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Navigating Year-End Logistics Disruptions: What to Expect (And How VCPB Can Help)

Published on
August 15, 2024
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By
VCPB

The months of September through December are particularly volatile for shippers because of expected challenges like the Atlantic hurricane season and peak retail shipping as well as unexpected events that cause logistics disruptions.

Past examples include:

  • In October 2021, more than 60 container ships were anchored off the coast of Southern California, waiting to berth in Los Angeles or Long Beach because of extreme congestion and backlogs at the ports.
  • In September 2022, the supply chain impacts from Hurricane Ian lasted for weeks.
  • The National Oceanic and Atmospheric Administration (NOAA) said 2023 was the worst year on record for billion-dollar natural disasters.

VCPB Transportation stands ready to help shippers navigate all challenges — not only this fall and winter but all year long.

6 Challenges to Watch for Through December

While supply chain disruptions caused by disasters like the Francis Scott Key Bridge collapse are unpredictable, there are six expected challenges the transportation and logistics industry will face during the remaining months of 2024.

1. Surges in Import Freight and Domestic Harvests

The peak season for ocean shipping typically begins in August and continues through October. Gene Seroka, executive director of the Port of Los Angeles, said its problems of past seasons, including congestion during the COVID-19 pandemic and cargo diversions to other ports last year because of fears of labor stoppages, are gone.

“The U.S. economy continues to be the primary driver of our cargo volume and I expect to see that continue in the months ahead,” Seroka said in a July media briefing. “We have ample capacity on our docks to efficiently handle more goods as retailers and e-commerce outlets begin to move fall fashion, Halloween, and year-end holiday items through the supply chain.”

VCPB’s extensive network and expertise in port drayage management ensure that containers are efficiently moved off terminals, even during periods of congestion. We ensure trucks arrive on time every time to reduce shippers’ exposure to unnecessary detention and demurrage fees. We know that real-time tracking is of utmost importance, and we keep an eye on all shipments using our state-of-the-art tech stack.

Domestically, the 2024 California Almond Objective Measurement Report expects 2.8 billion pounds of almonds will be harvested in the state this year — the third-largest harvest on record and 13% more than in 2023. Peach production in California also is up, a 6% increase over last year, according to Fresh Plaza.

At VCPB, moving fruits and vegetables is our bread and butter. We make sure both domestically grown and imported fruits and vegetables are delivered in excellent condition every time. We have years of produce shipping experience and know that temperature control is of top priority, so we’ve adopted the latest technology to deliver fruits and vegetables in perfect condition.  

2. Impact of Potential Tariffs and Trade Policies

Importers have been racing to beat the imposition of higher tariffs on Chinese goods, including electric vehicles, lithium-ion batteries, ship-to-shore cranes, steel, aluminum, and semiconductors. Additional review of the tariffs has pushed back implementation until late August or early September.

On the horizon, former President Donald Trump has said if he’s elected in November, he will impose a 10% tariff on all foreign goods sold in the United States.

VCPB works closely with logistics providers to alleviate uncertainty. We stay up to the minute on policy changes and help our shipping partners adjust their logistics strategies to minimize disruptions and costs. At VCPB, we are the go-to partner for shippers that need loads moved on time, at the right price, and without worry.

3. Labor Disruptions at Marine Terminals and Railroads

Bloomberg said in early August that an International Longshoremen’s Association (ILA) strike that would shut down ports on the East and Gulf coasts “is looking increasingly likely.”

Talks between the ILA and the U.S. Maritime Alliance, which represents ocean carriers and port terminal operators, came to a halt in June. The ILA’s contract expires Sept. 30.

“Even the threat of a port walkout can be disruptive as shippers seek alternative routes for their imports and exports,” Bloomberg said. “West Coast ports lost market share during an extended round of contract negotiations between dockworkers and their employers that ended with a six-year deal announced last summer.

Labor concerns extend beyond the ports on the East and Gulf coasts of the United States. If the Teamsters Canada Rail Conference authorizes a strike, workers at CN Railway and Canadian Pacific Kansas City will walk off the job, creating supply chain disruptions throughout North America. The union, which represents some 10,000 railroad workers, has been working without a contract since the end of last year.

Supply Chain Dive reported that the Virginia-based National Feed and Grain Association said in a letter that U.S. markets would be impacted by a Canadian work stoppage, which “would delay the delivery of agricultural goods and a strike could lead to potential food shortages and higher prices for consumers.”

VCPB has a deep understanding of both marine terminal and cross-border operations. We also have solid relationships with labor at the ports and railroads, and will work with them to minimize delays caused by any work stoppages.

4. Global Shipping Routes and Equipment Displacement

Houthi attacks on cargo ships transiting the Red Sea continue to force ocean carriers to divert vessels.

“Over six months have passed since the Red Sea tensions began, and the ripple effects on maritime shipping and global supply chains have intensified,” Maersk said in a July advisory. “Ships continue to be temporarily diverted around the Cape of Good Hope, significantly increasing transit times and operational costs. Regular service configurations and volume changes have put pressure on infrastructure, contributing to port congestion, delays, and capacity and equipment shortages. At the same time, demand for container shipping has remained strong.”

VCPB’s global logistics experts efficiently manage all kinds of disruptions, ensuring equipment is where it needs to be and when it needs to be and shipments are handled smoothly despite the challenges.

5. Weather-Related Disruptions

Hurricanes, tornadoes, wildfires, and other extreme weather events can have a massive impact on logistics. Storms could pack a wallop this fall, as NOAA has predicted above-normal hurricane activity this year.

Storms not only affect shipping lanes and infrastructure. Fuel prices and spot market rates often skyrocket in the wake of natural disasters.

VCPB proactively prepares for weather-related disruptions, providing reliable support and contingency plans to keep shipments on track at the best price possible.

6. The Changing Brokerage Landscape

There were 3,420 fewer active freight brokerages on Aug. 1 than on the same date last year, according to Brush Pass Research. In percentage terms, that’s an 11.5% decrease from Aug. 1, 2023, and a 13.8% drop from 2022.

As a firmly established freight brokerage with deep roots, VCPB offers unparalleled expertise and customer support. We’re no fly-by-night business. We’re in it for the long haul.

What to Look for in a Logistics Service Provider

There still are thousands of freight brokers out there, and it can be difficult to separate the best from the rest. Look for brokerages that provide:

  • A high level of service – they answer when you call and provide proactive updates.
  • Strong relationships around the country – with carriers, ports, shippers, and receivers.
  • Experience – they’ve seen it all and know how to provide solutions to even the greatest challenges.

Trust VCPB for the Expected and Unexpected

From import surges and tariffs to labor and weather disruptions, the logistics landscape is fraught with challenges. VCPB Transportation is your trusted partner in navigating these complexities.

At VCPB, we are experts at hauling fruits and vegetables. Our company was built by produce transportation and used that experience to grow to be an industry-leading provider of innovative transportation solutions.

Shippers trust us to handle expedited shipments smoothly and rapidly. We know that exceptional expedited solutions are absolutely critical with urgent shipments.

We are the ideal partner for cross-border shipping to Canada, skilled in navigating the complex regulatory landscapes of North American trade.  

That’s not all. We’re also widely known as a specialist in transloading and over-the-road, intermodal, and overweight and oversized freight.

Contact VCPB Transportation today for personalized logistics solutions and support to keep your operations running smoothly, no matter the disruption.

Produce Shipping
Logistics
Intermodal Trucking
Expedited Freight
Cross-Border
Refrigerated Trucking
Drayage
Alcohol Transport
Transloading
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