Tag Archives: congestion

New teu waiting days indicator highlights the severity of global container congestion

Kuehne + Nagel has developed a new measure of container congestion. Its digital platform seaexplorer now features the Global Disruption Index.

The index seems to total the cumulative TEU waiting time in days, based on container ship capacity in certain disrupted hot spots. Many US ports are included in the index. some Chinese and Korean ports and European ports are also included.

The graph below is an example of the information available. It clearly shows the rise in the index from 1- December to 19-January. North American ports are also clearly the largest contributors; however it is not clear from the article whether more ports from the US and North America are included in the analysis. The patterns are clearly similar.

Source: Graph from seaexplorer via Daily Splash article.

Now quite a few marine reporting services have developed congestion measures.

Is there a best one? I have not seen a study comparing the indices as to accuracy or the ability to provide insight.

For instance this Bloomberg article talks about another one, from RBC Capital Markets.

And this article from the Washington Post gives a good picture of the problems in the US.

Splash247 has also reported on the index created by the New York Federal Reserve here.

But the congestion cannot be denied. How to measure it and how to fix it are the questions to answer, for we get what we measure.

Sam Chambers January 20, 2022

New teu waiting days indicator highlights the severity of global container congestion – Splash247

Another innovation to move China exports

FedEx Freight has chartered some small ships and arranged with a few shippers to ship full 53-foot containers manufactured in China to the US Port Hueneme, CA. Port Hueneme is a small facility jointly used with the US military. Cargo use is allowed when there is no overriding military activity.

Doing this will allow FedEx Freight to bypass the logjams at the Port of Los Angeles and the Port of Long Beach. It also allows FedEx Freight to put the containers on its rail network for long-distance transport to inland locations. FedEx Freight is mostly an LTL service; ultimately most of the containers will be unloaded at a FedEx depot for the last mile of transport.

Other firms have been following similar strategies recently. It’s one way of getting past the bottlenecks in the LA/LB area. That should help FedEx customers. But the ships are small, and the volume will not be large. It will also produce more empty containers here in the US, and FedEx will need to figure out where to put them and how to get them back to China or elsewhere for another trip.

To the extent the bottleneck is due to surplus empty containers and a shortage of chassis, and irrational appointment behavior for delivery of empties, all this does is route a bit of cargo by another path. But no one should be criticized for examining and using alternate strategies in these hectic times.

Eric Kulisch, Air Cargo Editor Friday, January 14, 2022

FedEx Logistics charters vessels to move China exports, rail containers – FreightWaves

Tracking the speed, dwell and cars of Class I railroads

This interactive page shows key information about Class I railroads in the US. It displays the average speed of trains while moving, average dwell time in a yard waiting to be switched or unloaded, and the number of cars in service. You can select the figures for each Class I rail, and the time shown on the graphs, start and end.

The data comes from the Surface Transportation Board compilation of data provided by the railroads themselves, and is probably a bit late due to the deadlines for submitting figures.

The graph of speed for BNSF is especially interesting. It shows a recent spectacular jump, from under 25 mph to over 26 mph. Clearly the message is getting through to rails that they’d better move cargo.

Dwell time, spent sitting in yards waiting to be switched on, has for BNSF been rising recently, pointing to a new bottleneck. It had better start working on these problems.

We also don’t see which particular sites or segments of the rail line are contributing to the changes in the figures. That’s for each rail to figure out and make corrections. But seeing an overview of what’s going on will provide motivation for rails to do their part to keep congestion down. And a rail does not want to be perceived as slow-moving, for sure.

I hope we can count on the authors to keep updating this page, so the visibility will provide an incentive for rails to improve.

By Matt Leonard and Nami Sumida Updated December 6, 2021

https://www.supplychaindive.com/news/railroad-speed-dwell-carsonline-bnsf-csx-up-cn-cp-kcs-ns/588233/