The Port of New York and New Jersey collide with an accumulation of shipping containers

The Port of New York and New Jersey announced new tariffs on empty containers and export volume on Tuesday in its battle to reduce container congestion. Both loaded and empty containers considered long-lived will be subject to a quarterly “container unbalancing fee”. The rate will be effective September 1, pending the mandatory 30-day federal notice.

The Port of New York and New Jersey is the largest port on the East Coast and the third largest in the nation. Products that were recently processed at customs in July range from BMW motorcycles and clothes for David’s Bridal outside China, parts for Plug Power, a gas range for Tractor Supply and a “12 Days of Beauty Box” for Target.

But just like other ports, the Port of New York and New Jersey processed record volumes of import containers during the pandemic and saw these import containers wait longer at the terminals. These containers have clogged land capacity and slowed port productivity. As a result, more ships are waiting at anchor.

Under the new tariff, shipping carriers who do not move empty containers out of the port will be charged $ 100 per container. The port’s new container export levels require export volumes to be equal to or greater than 110% of a shipping carrier’s inbound container volume during the same period. If this benchmark is not met, the shipping carrier will be charged a fee of $ 100 per container for failing to achieve this benchmark. Both loaded and empty containers are included in the import container count. The volume of the railway is excluded.

Record the volume of cargo, excess containers

The surrounding land is also used by the port to make room for excess containers. The port has created a temporary storage facility for both empty containers and long-lived import containers on a 12-acre lot within the Port Newark and Elizabeth-Port Authority Marine Terminal. The port is also in talks and looking for additional areas that could be used as storage space.

“As we continue to manage record volume of cargo and work with our tenants and port stakeholders to remove empty containers in a timely manner, we urge all industry stakeholders to find sustainable, long-term solutions to a level problem. industry affecting many US ports, “Port Authority President Kevin O’Toole said.

The decrease in productivity can be seen in the increase in the travel time of the ships. The increased anchor times can be tracked in the transit time of the ship from China to the Port of New York and New Jersey.

“The Port of New York and New Jersey is facing record import volumes, leading to the accumulation of empty containers in and around the port complex which are now affecting the regional supply chain which is already under stress from various sources across the country. country, “said Bethann Rooney, director of the port department of the Port Authority of New York and New Jersey. “We strongly encourage sea carriers to step up their efforts to evacuate empty containers faster and with larger volumes to free up much needed capacity for incoming imports in order to keep trade moving through the port and the region.”

European freight and German port stress

East Coast ports such as New York receive many goods from Europe, where trade has been severely affected by continuing union struggles in both ports and railways. Exports to the United States are at least two months behind schedule.

Among the thousands of containers that were imported into the port of New York and New Jersey in July, according to a review of customs data by ImportGenius, were wine from Spain, pasta, Prosecco and Giorgio Armani suits from Italy. , and furniture from France.

Planet, a new contributor to CNBC Supply Chain Heat Map, captured photos to show the impact of rail strikes that left a container squashing at Hamburg’s rail terminals. Due to the extensive cloud cover in July, the comparisons are between May 15, 2022 and June 11, 2022. The accumulation of containers can be clearly seen. With the ongoing labor conflict, the number of containers has grown, according to logistics experts, and this is slowing the trade.

Comparison of Hamburg’s railway terminals

Planet

“The rail situation in Germany’s ports, particularly Hamburg, remains stressed and congestion is increasing,” said Andreas Braun, Crane Worldwide Logistics Director of Ocean Products for Europe, Middle East and Africa.

Rail operators constantly miss their normal delivery and collection windows and still cannot deliver loaded containers to the terminal earlier than seven days before loading. Due to the summer passenger timetable, container train operators have to give priority to increasing the number of passenger trains, which further contributes to the delays.

“At least a week of delays is normal now, however, which can be up to two weeks and the constant threat of losing the ship,” Braun said.

CNBC Heat M supply chainap data providers are artificial intelligence and predictive analytics companies Everstream Analytics; global freight booking platform Freightos, creator of the Freightos Baltic Dry Index; OL USA logistics service provider; FreightWaves supply chain intelligence platform; Blume Global supply chain platform; third party logistics provider Orient Star Group; marine analysis company MarineTraffic; maritime visibility data company Project44; shipping data company MDS Transmodal UK; benchmarking platform for maritime and air transport tariffs and market analysis Xeneta; leading provider of Sea-Intelligence ApS research and analysis; Worldwide crane logistics; and air, DHL Global Forwarding; freight logistics provider Seko Logistics; and Planet, provider of global and daily satellite imagery and geospatial solutions.

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