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FMC considering 60-day congestion emergency order
The FMC will ask the public to comment on whether supply chain congestion is severe enough to issue an emergency order. The order would force carriers and container terminals to share their cargo availability data directly with shippers, railroads, and drayage truckers.
The emergency order would last up to 60 days Additionally, there would be an option to extend it. The FMC noted in its information request that the container shipping sector has tried various strategies to reduce chronic bottlenecks over the past two years. The public will have 30 days following its publishing in the federal register to respond to the proposal.
According to OSRA, information sharing required under an FMC-issued emergency order would be aimed at improving the efficient transportation, loading, and unloading of cargo to or from any inland destination or point of origin, any vessel or any point on a wharf or terminal.
The law also states that such an order “must be tailored in terms of duration and geographic scope; consider the likely burdens on common carriers and MTOs; and consider the likely benefits on congestion relating to the purposes of the Shipping Act.”
U.S. chassis shortage to extend into 2024
North American chassis manufacturers have run into production delays in 2022 doe second consecutive. Manufacturing has slowed due to difficulties in sourcing raw components and troubles retaining factory workers. Therefore, widespread shortages of marine chassis may persist until 2024.
As a result of higher volumes, shippers are holding onto chassis much longer than pre-pandemic averages. Higher dwell times are putting additional pressure on equipment manufacturers to get more units off the assembly line.
Despite the detrimental effect chassis shortages have on cargo flow, CIMC has been forced to move a portion of its production facilities out of China to remain competitive in the U.S. Additionally, TRAC Intermodal said chassis turnover has slowed significantly during the pandemic.
Lessors and equipment pools have ordered at least 50,000 marine chassis from U.S. and foreign manufacturers due to be delivered this year. However, manufacturers say they will fall well short of that number.
Pratt Intermodal said orders due to be delivered this year will be pushed into 2023. Additionally, they said orders for next year will be pushed into 2024. TRAC and DCLI confirmed they will not receive as many chassis from manufacturers as anticipated in 2022. They attribute the shortfall primarily to parts shortages. Pratt has also had a tough time retaining quality factory workers. Many of the new employees the company hired in 2022 quit after completing their training. Additionally, long-time veterans have become wary of rejoining the sector with a history of cutting jobs during downturns.
About O’Neill Logistics
O’Neill Logistics is a leading 3PL with operations in Rancho Cucamonga, CA; Savannah, GA; and Newark/Monroe, NJ. We service many verticals including Garments, Fashion Accessories, Footwear, Furniture, Home Goods, & Electronics. Additionally, we offer omni-channel distribution and all value-added services. Lastly, we focus on retail “drop shipment” fulfillment and item-level fulfillment services with same-day service offerings.
O’Neill Logistics has over 2 million square feet of state-of-the-art facilities. Additionally, we offer dray services to support the warehouses and provide distribution to retailers and wholesalers. Our reliable 3PL platform combines sophisticated technology with robust, flexible processing designs and speed-to-market gateway models.
Lastly, we aim to simplify your supply chain. We deliver exceptional service and can optimize your operational performance. Therefore, we aim to build, protect and foster strong business partnerships.