Ports in Southern California are trading in the phrase “New Year, New Me” for “New Year, New Fee.” The spring cleaning of the two largest ports in the United States is expanding beyond its bottlenecked port — they aim to clean the air too. By incorporating clean truck fund rate fees, California port authorities are working toward their goal of a zero-emission port by 2035. This article will provide a birds-eye view of the situation and its effect on port drayage this year. 

Recently, to de-clog ports around the country and get shipping containers emptied and their content distributed, major ports began implementing fees for containers that linger past approved dwell times. The subsequent results of better port container management have been better than anticipated as the number of containers sitting at docks to be collected has dropped by over 60% in that time. However, the flip side to this positive is a largely unexpected downside, as highlighted by Bloomberg: “There are more than 115,000 empty containers in the Los Angeles port waiting to return to their point of origin, and that’s on top of another over 10,000 containers … across the Southwest United States.” The multi-faceted mechanics behind adaptable port container management requires a reworking of standard strategies to find something that really works for the modern supply chain and current market volatility.

In recent months, the backlog of containers in major ocean ports has been a core topic for news outlets and mainstream media. Meanwhile, expansion in other ports, such as the Port of Savannah, has become lifelines for shippers trying to find a suitable alternative to backlogged locations. All shippers are clamoring to find available capacity, and there is little hope that 2022 will be much better. However, freight brokers have realized that applied technology can increase back-office operations and reduce problems associated with strained capacity. Let’s take a closer look at the top five ways that drayage appointment tech achieves this goal.

The Port of Savannah is the third busiest ocean container terminal in the United States. Situated far from the turmoil of the San Pedro Bay Complex, home to the fiasco at the Ports of Long Beach and Los Angeles, the ocean terminal in Savannah is an ideal option for beneficial cargo owners (BCOs) and shippers trying to avoid subsequent backlogs. However, the Port of Savannah is still subject to the law of supply and demand. Thus, the Georgia container terminal is still enduring several backlogs. 

LCL shipping, also known as less-than-container mode, makes up a large percentage of ocean freight seen within the global supply chain. As recovery continues at ports and cities around the globe, the risk of rolled ocean cargo and long port delays continues to plague major ports in the United States and other countries as well. At the same time, alternate ports of entry, like the Port of Savannah, are actively working to expand its TEU capacity, and accounting for congestion is essential to understanding when rolled cargo may occur. After all, there’s only so much space on any dock.  Unfortunately, there’s a problem that’s often overlooked. Rolled cargo is easier to justify for full container loads (FCL), but many many underestimate the value of LCL as its own mode too. 

Above-average activity across the nation’s ports is expected to remain at or near current levels for the foreseeable future. Despite investments in both management styles and drayage service near ports, the best way to manage imports is to look at the realities between the nation’s major ports. For instance, understanding the difference between the Port of Savannah drayage service and that of South California comes down to understanding what sets the GPA apart and how it will help shippers move freight more efficiently. Meanwhile, another factor to consider is that the backlog is not only a result of the pandemic. And it’s important to understand how and why port differences must be under the radar of every shipper and when one port is better-suited than another. 

Port backlogs are becoming more problematic and widespread. While much of the media coverage focuses on the U.S. West Coast, according to The Wall Street Journal, the backlog has affected the Port of Savannah too. “Between 20 and 26 vessels have been idling at a time in the Atlantic Ocean in recent weeks, including 24 that were waiting for berth space at Savannah,” The WSJ reported in September 2021. The solution to the backlog is to increase throughput and get empty containers back to Asia faster. And improvements in the chassis pool, such as requiring more dual transactions, could help overcome the backlogs.

Supply chain shortages continue to be the norm in today’s economy. Unfortunately, the efforts to overcome disparities and shortages arising from the pandemic have created massive backlogs at many major ports. However, there is hope on the horizon as major retailers look to curb total supply chain costs in anticipation of potential fines for excess idle time. Furthermore, additional operating hours at ports are helping to avoid issues on both sides of the country. According to Maritime Executive, “The Georgia Ports Authority is reporting an initial success at clearing some of the containership congestion at the Port of Savannah while the port also recorded its first-ever month handling more than 500,000 TEU.” Let’s take a closer look at what’s happening and how it will impact port operations and port drayage in your supply chain.

For all of the various modes and options available for freight transportation, there are almost as many service options available from freight brokers. Brokerage services have stayed essential to domestic and global freight transportation for decades, and their impact continues to grow. As highlighted in a report by MarketWatch, the “Global Freight Brokerage market size is estimated to grow at CAGR of over 4% with USD 41.60 billion during the forecast period of 2021-2025.” With this much impact already seen and this level of growth predicted, it is easy to see why brokers remain an essential part of the modern supply chain network. But, what do freight management experts in a brokerage do, and what real difference exists between brokers?

Transporting cargo to ports, warehouses, storage centers, transportation facilities, and final customers generally falls under the umbrella of drayage transportation. With its prevalence and vital role in the market, the challenges of drayage cannot be overlooked or ignored. As highlighted by PR Newswire, “The global drayage services market is set to grow by USD 2.90 billion during 2021-2025, according to the latest market research report by Technavio.  The market is expected to witness a 1.49% YOY growth in 2021 and register a CAGR of 2% during the forecast period.” With such a powerful and direct impact on the supply chain and with such potential for future growth with e-commerce importers and shippers, the everyday challenges of drayage must be addressed in a practical and adaptable manner.