When Will Vessel Capacity Issues Be Resolved?

This has become the million dollar question that is asked by supply chain professional and customers every single day. Well, unfortunately we are not hearing very encouraging news regarding this topic. The experts all seem to agree that there will be no relief seen in 2022, and not for some time into 2023 as well.

Infrastructure problems, labor constraints, high demand and reduced capacity are being blamed for this continuing trouble in the market. The situation is also compounded by regular vessel delays, with most ships being completely over-booked and no replacement options on the next voyages.

Shippers have desperately been looking for relief since COVID-19 emerged, but industry stakeholders are saying that shippers will not see much relief coming anytime soon, and that it will not be any better into 2023, especially now with Russia’s invasion of Ukraine. This is because this is a global problem and not only a U.S. problem. It’s hard to predict what issues are going to cause ripple effects in the future, Russia being mentioned as possible issue, along with upcoming negotiations between marine terminal operations and labor unions.

All that we logistics professionals can do is roll with the times (no pun intended) and keep coming up with creative ways to maneuver around these ever-changing challenges. We have already seen a 60% increase in the number of vessels that are on the Asia-North America EAST Coast trade lane and this will continue to grow, as the lack of space for West Coast ships continues to extend berth and container dwell times.


Canada cuts Russia and Belarus from Most-Favored-Nation Tariff treatment: Russia’s invasion of Ukraine, supported by Belarus, is a violation of international law and threat to the rules-based international order. Canada is taking further action to ensure those who do not support the rules-based international order cannot benefit from it.


Commerce Imposes Sweeping Export Restrictions on Belarus for Enabling Russia’s Further Invasion of Ukraine: Today, the U.S. Commerce Department, through its Bureau of Industry and Security (BIS), imposed on Belarus the stringent export controls made effective on Russia on February 24, 2022, in response to Belarus’s substantial enabling of Russia’s further invasion of Ukraine.


CBSA Consultations: CUSMA Dairy Tariff Rate Quotas (TRQs) Panel Report Implementation: This message is to inform you that Global Affairs Canada has launched consultations on the CUSMA dairy TRQs Panel report implementation.


Canadian Pacific Strike Mandate: There were 3062 ballots sent out to the membership. Simply Voting has provided the following today February 28, 2022, with 96.7% voting in favor of strike action if necessary. We will continue to participate in the mediation process with the assistance of FMCS with planned dates of Friday March 11 to Wednesday March 16, 2022.


Government of Canada lightens border measures as part of transition of the pandemic response: Recent data indicates that the latest wave of COVID-19 driven by the Omicron variant has passed its peak in Canada. As provinces and territories adjust their public health measures, and as we transition away from the crisis phase, it is now time to move towards a more sustainable approach to long-term management of COVID-19.


Russia-Ukraine: Retail diesel prices starting to spike following commodity moves: Major US retailer publishes numbers — on average they’re up more than 35 cents in 2 days



President Biden targets container lines for ‘overcharging’ This article covers President Biden’s latest announcement on the “exploitation” steamship lines have brought to container shipping by raising ocean freight costs by over 1000% since the beginning of the pandemic. The article goes on to cover Biden’s goals to put in place stricter regulations to bring more competition back into the container shipping market



Viewpoint: Don’t be fooled — the supply chain is not getting better


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