It’s interesting how when we measure something we soon are able to pick up signals that something different is happening. Freightwaves has been publishing SONAR data on different logistical measures for quite a while. This article shows several measurements which tell us that shippers are looking for alternatives in advance of any East Coast port strike in the US.
Inbound bookings are up at Los Angeles. Outbound container volume is up at LA and down at New York.
The trick in the graphs here (from the article) is to look at the white line representing 2024 volumes. It’s only two-thirds of the way across. But it’s way up in LA.
So already there is evidence of a flight by shippers to the West Coast ports from the East Coast ports. That’s not good news for the East Coast and South ports, who are the potential targets of the strike by the International Longshoremen’s Association (ILA). Those who follow the news know that September 30 is the date by which an agreement should be reached. So far the government has not intervened to force arbitration and require work to continue.
I love the statistics in this article. For instance the Long Outbound Tender Volume Index (tender bids (measured by an index) for trucking outbound from LA is up to 171 this year, way above the las two years. It will be hard to get trucking services outbound from LA in the immediate future; capacity will be short.
A logistics pro might well consider using the SONAR data to look for trends that might affect how she looks for transportation services, and the price she’s willing to offer.
Michael Baudendistel·Tuesday, September 10, 2024
https://www.freightwaves.com/news/shippers-wariness-of-potential-ila-strike-visible-in-sonar-data
Supply Chain and Logistics 