Thunderbolt Global Logistics Information about New Tariffs by the Trump Administration

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March 4, 2024

Today is the day that new tariffs from Canada, Mexico and China are in effect.    All imports from Canada will now have an additional 25% tariff with the exception of energy imports which will be at 10%.  Imports from Mexico will have an additional 25% tariff on all imports with no exceptions.    An additional 10% tariff on imports from China are now in effect.   This is on top of 10% tariffs that went into effect February 4,2025.   Here are some links to follow.

Mexico               Canada                China and Hong Kong

This is the official statement from The White House last month.

The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA).

  • Until the crisis is alleviated, President Donald J. Trump is implementing a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China.  Energy resources from Canada will have a lower 10%

These tariffs will remain in place until President Trump feels that each country is doing what is necessary to stop the influx of fentanyl into the U.S.A.   Until then uncertainty reigns and the impact on the economy will be felt immediately.

The increase in tariffs will lead to higher costs for the American public and will create inflationary pressure on the economy.  It’s a policy that has not worked historically.

The steel and aluminum tariffs that are proposed go into effect at 12:01 Eastern Time on March 12th from all countries around the world with no exceptions.

On February 10, 2025, President Trump issued two proclamations – Adjusting Imports of Aluminum into the United States and Adjusting Imports of Steel into the United States – modifying the steel and aluminum tariffs that he had originally imposed in 2018 under Section 232 of the Trade Expansion Act of 1962.

The new action expands the original Section 232 tariffs by (i) ending all country exemptions, phasing out the specific product exclusion process, and terminating all existing General Approved Exclusions (GAEs); (ii) raising the aluminum tariffs from 10% to 25%; (iii) adding more downstream steel and aluminum products to the tariffs’ coverage; (iv) and creating an exemption process for imported derivative articles made from steel “melted and poured” and aluminum “smelted and cast” in the United States.

The Federal Register notices on Steel and Aluminum will be published on March 5. They are available today for review and we have attached them for your reference.

In summary,

Steel

March 12 is the effective date for 25% tariffs on the original steel products and derivatives plus the NEW list of derivative products classified in HTS Chapter 73

  1. The effective date for 25% tariffs on NEW derivative steel products listed but not classified in HTS Chapter 73 will be determined by the Secretary of Commerce when a system is in place to collect the duties on those product. The additional duty shall only apply to the declared value of the steel content of the derivative article. The quantity of the steel content shall be report in KG.
  2. All Imports of derivative products shall provide any information that may be required by Customs and Border Protection (CBP) to permit administration of the duties.

A duty exemption applies ONLY to the NEW list of derivative products provided the product was processed in another country from steel articles that were melted and poured in the U.S.  N.B. this same exemption does not apply to steel articles and derivatives on the ORIGINAL lists.

Aluminum

March 12 is the effective date for 25% tariffs on the ORIGINAL aluminum products and  derivatives plus the NEW list of derivative products classified in HTS Chapter 76.

  1. The effective date for 25% tariffs on NEW derivative steel products listed but not classified in either HTS Chapter 76 will be determined by the Secretary of Commerce when a system is in place to collect the duties on those product. The additional duty shall only apply to the declared value of the aluminum content of the derivative article. The quantity of the aluminum content shall be report in KG.
  2. Note that importers are required to report to CBP the primary country of smelt, secondary country of smelt, and country of cast on imports of all aluminum articles subject to the aluminum and aluminum derivatives Section 232 measures. In addition, all Imports of derivative products shall provide any information that may be required by CBP to permit administration of the duties.
  3. A duty exemption applies ONLY to the NEW list of derivative products provided the product was processed in another country from aluminum articles that were smelted and cast in the U.S. NB. this same exemption does not apply to aluminum articles and derivatives on the ORIGINAL lists.
  4. If the products are from Russia, or any amount of primary aluminum use to make the article is smelted in Russia or cast in Russia, it is subject to 200% tariffs. In addition, the same exemptions under HTS Chapter 98 do not apply the same way as to other origin goods.

The President could change his mind and delay these tariffs but it’s unlikely.   These tariffs will add more cost for manufacturers in the United States that use foreign steel and aluminum in their manufacturing process.     Again, the consumer will ultimately pay for most of the tariff increases as prices for goods and services will go up.     With these higher duties we may require advance payment of duties if an importer does not have their own ACH account with U.S. Customs.  We suggest that importers with commodities that fall under these tariffs pay their duties direct to U.S. Customs.

We will continue to monitor the situation closely.   If you have any questions please send a message to compliance@thunderboltglobal.com

Thank you very much.

Thunderbolt Global Logistics 2024 End of Year International & Domestic Transportation Update

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December 30,2024

The year is ending the way it began with lots of uncertainty in the shipping world.  The Houthi’s in Yemen are still attacking vessels in the Southern Red Sea.  This is causing most ocean carriers to divert vessels around the Cape of Good Hope.   An ILA (International Longshoreman’s Association) strike along USA East Coast & Gulf Coast is now looking very likely at midnight on January 15,2025.   Part II of The Trump Presidency Part will begin again on January 20th with the threat of increased tariffs on imports from all over the world.     No region of the world is safe from his threats.   Even our largest trading partners (Canada and Mexico) are in his sights for additional tariffs.

The most concerning issue right now is the looming ILA (International Longshoremen’s Association) strike at nearly all USA East Coast and Gulf Coast ports.   If it happens it will be a major disruption in ocean shipping.   The deadline is midnight on January 15th.  The 3-day strike back in early October was painful but carriers and ports rebounded quickly.  The wage issue was settled but the automation issue at the terminals is the key point that the ILA and United States Maritime Alliance Ltd. (USMX) must work out.  There are no negotiations going on at this time and the deadline is just over 2 weeks away.   Ocean carriers are developing contingency plans if there is a strike.

There is no election around the corner like there was in October. President Elect Trump is firmly on the side of the ILA. The ocean carriers are sounding like they are not going to give in to the ILA demands of no automation at the port terminals.  The 11 main ocean container carriers are foreign owned, and they will get very little sympathy from the U.S. Government and U.S. Public.    A strike of more than a few days will cause weeks of congestion and delays.    It will greatly impact the U.S. economy in a negative way.   There aren’t many other shipping options to the East and Gulf Coast.    Using Canadian ports is an option where it makes sense, but Canada has their own labor issues at their ports too.   Space is also tight via Montreal, Quebec, St. John New Brunswick and Halifax Nova Scotia.

Ocean carriers are already publishing proposed surcharges that would go into effect if there was a strike in excess of $1500.00 per 40’ container.   LCL carriers are doing the same and could charge up to $50.00 w/m if there is a strike.    Importers and exporters will see higher shipping costs if the strike does happen.

OCEAN CARRIER ALLIANCES ARE CHANGING IN 2025

The ocean carrier alliances are going to play musical chairs in early 2025.   The divorce between Mediterranean Shipping Company (MSC) and Maersk Line will become final on February 1st.    MSC will operate as a standalone carrier with no primary carrier partner.   The marriage of Maersk and Hapag Lloyd will commence on February 1,2025 under the “Gemini Cooperation” agreement.     Hapag Lloyd will withdraw from their partnership with Yang Ming Lines, Ocean Network Express and Hyundai Merchant Marine.   Yang Ming Lines (YML), Ocean Network Express (ONE) and Hyundai Merchant Marine (HMM) will now brand themselves as The Premier Alliance.    Evergreen Lines, CMA CGM, Cosco Shipping and OOCL Lines is now called The Ocean Alliance.   Their agreement is in place through 2032.    Zim Lines is operating independently in many trade lanes.   Zim also has an agreement with MSC in the Transpacific.

EUROPE TO THE UNITED STATES

Space is tight from Europe due to the potential ILA strike and possible tariffs on European imports.

Import rates have also been climbing but not to the same extent as they are from the Far East.

The upcoming changes in the ocean carrier alliances will cause some vessel scheduling issues.    We can expect some service disruption in late January and February as the new partners start working together.

Hapag Lloyd and Maersk Lines Gemini Agreement will call The Port of Baltimore when they begin their partnership from North Europe, Italy (Via Tanger Morocco) and several ports in China.      This will be a big positive for the port and for importers and exporters.   This is especially true for out of gauge (OOG) cargo that would ship on flat rack or open top containers.   Hapag Lloyd is a strong carrier for OOG cargo.    They have very good availability of equipment.

Yang Ming Lines has announced that their AL2 service will start calling the Port of Baltimore in February.

Ports calls in Europe are Southampton, Rotterdam, Antwerp, Bremerhaven and Le Havre.  It’s unclear at this time if their Premier Alliance Partners will also join this service or if they will partner with other carriers.

The RO/RO mafi carriers that call North Europe are for the most part back to handling heavy, wide and tall cargo.  The Port of Baltimore is still the number 1 port for RO/RO cargo, and with that static cargo can ship to Baltimore for delivery to points in the Midwest for imports, and for exports out of the USA Midwest to destinations in Europe and elsewhere.

ASIA to the UNITED STATES

Imports from Asia are hot again after a brief cooling off period in November and early December.

Vessel space right now is very tight from all origins in Asia to the West Coast and East Coast.

The increased volume via the West Coast has led to rail delays going into the Midwest.

As written earlier the rates will continue to climb until Chinese New Year and then they should moderate.

If there are tariff increases from China when the Trump Administration takes office, this will impact volume to the U.S.A.   Carriers will still use blank sailings as a way to create artificial demand when they deem it necessary.

LATIN AMERICA TO/FROM THE UNITED STATES

Rates are still strong from South America, especially Brazil to the USA.   Space is tight due to a lack of capacity.     Port congestion in Brazil is causing vessel delays going northbound.   Southbound rates are stable and carriers are looking for cargo.

EXPORT FROM THE UNITED STATES

Ocean export volume from the United States is stronger now but that could change if trade wars erupt in 2025.    Countries will implement tariffs against U.S. products if the U.S. does the same to them.   Carriers are actively looking for freight to fill their ships.

Empty container availability at inland rail depots can vary by carrier and rail depot.   Empty containers are dependent on imports at nearly all inland depots.     If imports drop due to higher tariffs it could lead to equipment shortages at inland depots.

Vessel schedule integrity is still an issue.  This will most likely persist well into 2025.  An ILA strike will lead to vessel bunching as they wait for the strike to end.

Special equipment (open top and flat rack containers) can be scarce at some ports (Baltimore in particular), so the earlier we can book space and secure equipment, the better off we and you are.

TRUCKING ISSUES IN THE UNITED STATES

Container drayage at most ports and railroads are still fluid with no discernible issues with capacity.  If there is a strike in January all bets are off regarding truck capacity.   It will tighten up quickly if there is a strike.    Importers will likely see an increase in demurrage costs if the ports become very congested.

This needs to be watched very closely.

Flatbed trucking is in relatively good shape around the country.  We have not seen areas where we cannot find available trucks.

Heavy haul capacity is also still in relatively good shape.  There is still a lot of cargo being shipped requiring multi-axle trucks. There are energy and infrastructure projects that are keeping the heavy haul truckers busy.

WHAT DO WE RECOMMEND

Continue to plan ahead.     We hope that the ILA and USMX can reach an agreement before the January 15th midnight deadline.

We always must be ready for the unexpected.  We ask all our customers and overseas partners to keep in close contact with us so we can help you transport your shipment from Point A to Point B.

WHAT IS THUNDERBOLT GLOBAL LOGISTICS DOING?

We are still working hard every day to make sure the freight keeps moving.  We are constantly checking on every shipment to make sure there are no delays.    We’ll watch the ILA/USMX negotiations closely.  We’ll wait and see if increased tariffs will come into effect when President Trump takes office January 20th.

We are grateful for all the support we receive from around the USA and around the world. Please contact us if you have any questions or need more information.

We hope everyone had a Merry Christmas, Happy Hanukkah and will have a safe New Year.  All the best for 2025!

Jim Shapiro, Director

 

Thunderbolt Global Logistics Late August 2024 Transportation Update

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August 20,2024

We are now in what we call the dog days of August.    Summer holidays are ending, school is about to start, football in Europe has just begun their season and the NFL is going to start in early September.

The word of the day/week/year is disruption.  Here is the definition of disruption.

Disturbance or problems which interrupt an event, activity, or process

There seems to be a new disruption going on in global shipping every week.

  • On August 12th a container of hazardous materials blew up at the Port of Ningbo.
  • Ports in India may strike August 28th after 3 years of negotiations 
  • Brazil is facing massive port congestion and a surge of exports that has driven ocean freight rates to near Covid levels.  
  • The Red Sea situation has not changed and few vessels are transiting the Suez Canal and going around The Cape of Good Hope.       
  • A nationwide rail strike in Canada is likely to happen beginning this Wednesday August 22nd.   
  • The biggest potential disruption Is an impending strike at nearly all U.S.A.  East Coast and Gulf Coast ports when the ILA (Int’l Longshoreman’s Association) contract expires at midnight on Sept. 30th.      

The master contract for the ILA covers ports from Boston to Houston with few exceptions.    There hasn’t been a strike on the East Coast in over 45 years.   That may change based on what is being said by the leadership of the ILA.    The Biden Administration may have to get involved.   They have largely stayed on the sidelines so far.

Cargo handling at the ports would halt just weeks before the U.S. presidential election.  Here are statements from both sides in the negotiations:

The United States Maritime Alliance, known as USMX is ready to continue bargaining with the ILA leadership.   They state that their latest offer to longshoreman includes “industry -leading wage increases” and retains the current contract’s language on automation at the port terminals.

The ILA contends that shipping CEO’s are “taking home bonuses in the billions” and ocean carriers are raking in profits by “raising rates on their customers due to global conflicts or natural disruptions.”

The West Coast ports avoided a strike last year when they struck a deal on August 31,2023 that gave dock workers a 32% salary increase over the span of the 6-year contract.    The ILWA worked without a new contract as negotiations took place.  The ILA is looking to beat that increase for its members.  

They have stated that they will not work beyond the expiration of the contract.  Their members are preparing for a strike.   It doesn’t look good.

This is the situation in Canada.  The CIRB has made a ridiculous ruling that will greatly impact the Canadian and U.S. economies.   Here is what is happening;

With the Aug. 9 Canada Industrial Relations Board (CIRB) decision that none of the services provided by the two Canadian railways—CN and CPKC—are essential by law, no rail services are required to be maintained in the event of a work stoppage involving the Teamsters Canada Rail Conference (TCRC). The earliest possible date of a work stoppage is now Aug. 22 at 12 a.m. ET, and CN and CPKC are preparing their operations for ceased services.

In addition to the embargoes on Rail Security-Sensitive Materials (RSSM), Poison Inhalation Hazard (PIH) – Toxic Inhalation Hazard (TIH) and Time-Sensitive commodities issued on Aug. 12, CN announced a staggered schedule of embargoes for other freight handled by its network:

  • All temperature-controlled intermodal traffic, effective Aug. 15. (Exact timing is dependent on origin and destination.)
  • All hazmat traffic, effective Aug. 15. (Exact timing is dependent on origin and destination.)
  • All intermodal traffic destined to all points in Canada from U.S. origins or U.S. interchange, effective Aug. 16 at midnight ET.
  • All U.S. to U.S. Intermodal shipments will continue to move per normal operations.
  • You can also find CN’s embargo schedule, as well as intermodal origin/destination timing, here.  
  • “If a settlement is reached, or an arbitration process is established, we will remove embargoes and resume normal operations,” CN said in a statement.

No work stoppage planning schedule has been made available by CPKC at this time, but check the railroad’s website for updates here.

Here is the current situation in Brazil regarding congestion at the main port of Santos and at the Port of Itapoa.

An example of the situation is the BTP terminal, one of the most important in the Santos port complex.  The main terminals have been operating at close to 100% capacity for several months.

This has mainly affected export shipments, as terminals do not have sufficient windows to release appointments for truck drivers to deliver containers within the deadlines determined by maritime transport companies for shipment.

The possible consequences of this problem have been extra costs for truck drivers for not being able to deliver the loaded containers to the factories and the transfer of reserves to the next ship, as it is impossible to meet the deadlines given by the transporters.

Itapoa port terminal in the State of Santa Catarina has been facing similar congestion issues, but today it is not so critical as in Santos due to the lower volume of container handled in this port.

EUROPE TO THE UNITED STATES

Space has tightened up the United States in anticipation of the strike by the ILA at the end of September.

Rates have climbed and carriers will try to take advantage of the situation.   Some carriers have reduced the vessel size to the USA and redeployed them to Asia- Europe trade.    

ASIA to the UNITED STATES

Imports from Asia are very strong and have been for the last 4 months.    The possible strike along with additional tariffs for some commodities from China have led to a surge of cargo.    Ocean rates have tripled since earlier in the year.   Rates have stabilized over the last 2 weeks but they are still at the highest levels seen since Covid times.    West Coast ports will see more cargo due to the potential strike on the east coast and this will lead to rail delays from all west coast ports. 

The low water issue at the Panama Canal has improved a lot and the canal is nearly back to normal vessel transits per day.   This is a welcome relief after months of fewer daily transits through the Canal.

EXPORT FROM THE UNITED STATES

Ocean export volume from the United States is stronger now and space is tight to some regions of the world.   This is especially true to the Middle East due to the Red Sea situation.  

Empty container availability at inland rail depots is still problematic in some locations.  Chicago has deficits in available 40’ HC containers for many carriers.  Container availability is dependent on import shipments arriving at inland locations.  Ocean carriers rarely, if ever reposition empty containers to inland locations.

RO/RO carriers are accepting more and more static cargo to load on their vessels.   This is a turnaround from earlier in the year when they had no space available.          

PORT CONGESTION N THE UNITED STATES

New York seems to be the port on the east coast that is experiencing congestion.   Some truckers are charging congestion surcharges.  West Coast ports are likely to see a surge of containers due to the potential strike at the end of September. The upcoming rail strike in Canada has led to cargo diversion to U.S. west coast ports.We are grateful for all the support we receive from around the USA and around the world.  This is especially true during the period when the Port of Baltimore was closed due to the Key Bridge accident.

Please contact us if you have any questions or need more information. 

Be safe!

Jim Shapiro, Director

Thunderbolt Global Logistics 2023 End of Year International & Domestic Transportation Update

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The year is ending in a turbulent way in the world of shipping.  War in the Middle East and Europe along with drought conditions in Panama have drastically impacted the maritime industry.  2024 is going to start off with a lot of uncertainty with the ocean carriers, especially on trade routes that utilize the Suez Canal and Panama Canal.

Looking back, 2023 started off with available capacity in most forms of transportation.  Space was not an issue from Asia to the U.S.A.  Rates were falling.  Truck capacity was available in most markets.  Port congestion was spotty.  Chassis were not always plentiful but there wasn’t a chronic shortage like there was in 2022.

Space was still tight from Europe, and RO/RO carriers that handle static cargo were booked out for month.   Rates came down from Europe in the summer and kept falling into the fall.  Space has opened up with the RO/RO carriers.

Some of the issues that haven’t gone completely away are:

  • High diesel fuel costs. Truckers are still charging fuel surcharges up to 40% or more in some markets.  Until diesel fuel costs go down, the fuel surcharges will remain high.
  • Return of empty import containers back to the terminal. In some ports there are restrictions on returning empty containers due to a lack of appointment availability.  Truckers have to hold the empty container until they can obtain an appointment to return it.  This adds costs to an import delivery.
  • Rail delays are happening from the west coast of the USA to the Midwest. Long Beach is having issues right now due to more volume being routed through the west coast due to delays at the Panama Canal.
  • Rail delays from Montreal going to the Midwest (Detroit/Minneapolis/Chicago) are really bad right now as the year ends.

VESSELS RE-ROUTING AWAY FROM THE SUEZ CANAL AND RED SEA VIA CAPE OF GOOD HOPE (COGH)

An escalation in drone and missile strikes on maritime ships passing through the Bab al-Mandab Strait at the southern mouth of the Red Sea has created uncertainty for global supply chains.  This has left shippers on the Asia-to-Europe trade lane, and to lesser extent, on the Asia-U.S. east coast, facing the possibility of sharp increases in ocean freight rates as most ocean container carriers re-route vessels around the Cape of Good Hope to avoid the Suez Canal.  This will add 3 plus weeks of transit time and add’l costs.  This is especially true for shipments to Europe.  This could add inflationary pressure if ocean rates go up sharply.

Operation Prosperity Shield was created just over a week ago in light of the continued attacks on commercial maritime traffic in the region.  This is an enhanced naval protection force operating in the southern Red Sea in an attempt to ward off mounting attacks from Yemen’s rebel Houthis on merchant shipping.  Houthis have been launching drone and missile attacks from the areas of Yemen they control.  They have also captured a few vessels and are holding them hostage.  This is in response to the war in Gaza.  They are firing on any vessel they believe has Israeli ownership or will call on an Israeli port.  A lot of the data they are referencing is old and is inaccurate.  Vessel and crew safety is of the utmost importance.  Hopefully, the show of force will reduce/eliminate these attacks.

Countries besides the U.S. participating in the effort include Bahrain, Canada, France, Italy, The Netherlands, Norway, Seychelles and Spain.  Saudi Arabia and Egypt are not participating which is disappointing.  More countries should participate as 15% of world trade passes through the Suez Canal.

Maersk Line has just announced they will resume utilizing the Suez Canal route with this added protection.  CMA CGM is allowing some of their ships to pass through the Suez Canal with protection from French Naval forces.  As of this writing, the other major container carriers have not changed their plans.  Hapag Lloyd and Mediterranean Shipping have rerouted all their vessels and are sailing around the Cape of Good Hope (South Africa).

EUROPE TO THE UNITED STATES

Space is readily available on container vessels from Europe to the United States.  Some capacity has been withdrawn due to the downturn in rates.  We are seeing delays out of Poland on feeder vessels that marry up with the main vessels sailing to the USA from Rotterdam or Hamburg/Bremerhaven.  Vessel schedule integrity is still a problem nearly everywhere as we see delays regularly from most European ports.

The RO/RO mafi carriers that call North Europe had space issues throughout most of 2023.  We did see space open up in the latter part of the 4th quarter.  We do hope that this situation continues to improve in the 1st quarter of 2024.  They are critical to moving oversize cargo on their vessels.  The Port of Baltimore is the number 1 port for RO/RO cargo, and with that static cargo can ship to Baltimore for delivery to points in the Midwest for imports, and for exports out of the USA Midwest to destinations in Europe and elsewhere.

The availability of empty containers at inland depots in Europe can be challenging.  It can vary from week to week.  The ocean carriers’ control what they want to do with the equipment.  When needed, our partners in Europe will pick up empties as close to the loading location as possible.

Hopefully we will see rate stability from Europe in 2024, but the situation in the Red Sea could cause rates to go up from Europe too.

Thunderbolt Global Logistics Receives a 2023 Regional Award for The Americas from The Project Cargo Network

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Thunderbolt Director Jim Shapiro attended the 12th Annual Summit of the Project Cargo Network (PCN) that took place at The Royal Cliff Hotel in Pattaya, Thailand, from November 12th to 14th. 185 people from 60 countries attended the meeting. PCN knows how to organize a great meeting. Thanks to Rachel, Judith and the Team in London for putting together a great 3 days in Pattaya.

It was a great time starting with  golf at the Chee Chan Golf Resort on Sunday. The dinner and fireworks Sunday night were fantastic. Thanks Patrik Eckert for sponsoring the festivities. Our meetings on Monday got underway with our CEO Rachel Crawford opening the conference meetings with an update on the network and then handing out the awards from the survey that was sent to all the members.

Thunderbolt Global Logistics was given the Regional Award for The Americas as voted by the members of the network. We are once again honored and humbled that our network partners think so highly of our company. Our team in Baltimore always strives to take care of our overseas partners. This award validated their hard work.

Congratulations to the members that won for their regions and the network member of the year. Well done! Our network is a really strong one with so many fantastic people and companies in it. It’s a people business and meetings like this reinforce that belief.

Attendees really enjoyed all the one to one meetings and evening activities. New relationships were started and it was great catching up with people we have dealt with for many years. We are grateful to all the members that take care of our shipments in their respective countries. Thunderbolt Global will continue to take good of their shipments as well in the USA.

We are looking forward to seeing everyone in Cyprus next October.

CLC Project Network Members: Hemisphere Freight Services & Thunderbolt Global team up in November 2023

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Hemisphere Freight Services and Thunderbolt Global Logistics, LLC teamed up together to coordinate a sensitive Art Sculpture Delivery from Queenstown, New Zealand to Dillon, Montana. The strength and value of the CLC Project Network was exhibited in this transaction.

Thunderbolt Named International Member of the Year at Project Cargo Network International Meeting in Dubai, November, 2022

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Thunderbolt Global Logistics Director Jim Shapiro attended the 11th Annual Meeting of PCN (Project Cargo Network) from Nov. 27-29,2022 in Dubai. There were over 185 CEO’s and Senior Managers from 95 countries. He had a great time seeing old friends he hadn’t seen in 3 years and making new ones that I met while at the meeting.

“I was very humbled when President/C.E.O. Rachel Crawford announced in her opening remarks that Thunderbolt Global Logistics was named International Member of the year for 2022. It’s gratifying to receive an award based on as survey of the members of the network. I can’t thank them enough. We’ll keep doing our best to assist them. We’ll keep asking them to help us when needed.

I am very proud of our team in Baltimore as this award is because of them. We have a great staff of hard working professionals.”  Said Shapiro after receiving the honor.

Thunderbolt Global moves huge shipment from Turkey to Seattle, WA

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Thunderbolt Global Logistics finished a project last in late February for one of our top clients that had a critical shipment from Turkey that delivered to their customer in Seattle, Washington on the northwest coast. There was a total of 9 pieces of static cargo. The 3 largest had the following weight/dims:

17,209 kgs/Dims: 650 x 600 x 490 cm
2,500 kgs/Dims: 490 x 490 x 150 cm
14,750 kgs/Dims: 450 x 450 x 350 cm

The other 6 pieces were not oversize and delivered on 2 flat bed trucks. From Turkey we had Bati Shipping arranged the transport from the factory in Turkey to Zeebrugge Belgium on a short sea RO/RO vessel due to the fact there was no service option from Turkey to Seattle or Tacoma.

Once the cargo arrived in Zeebrugge the cargo had to be transferred from the arrival terminal to the Wallenius Terminal in Zeebrugge at night. Europecargo based in Antwerp took care of that portion and set up the shipment from Zeebrugge to the Port of Tacoma on Wallenius Wilhelmsen Line. Both Bati Shipping and Europecargo did a great job.

The Wallenius vessel from Zeebrugge to Tacoma was only 1 day late from what they had showed on their schedule at the time of export. Unheard of these days for most ocean carriers. We had a deadline to deliver by a certain date and the vessel being on time was critical. We had no issue with customs clearance as it was cleared prior to arrival in Tacoma. The two widest pieces had to be delivered on the weekend between 1:00 AM – 6:00 AM

Delivery of the two widest pieces was complete by 2:30 AM in the morning Saturday. The other wide piece was delivered during the day on Friday and offloaded at night once the crane was set up at 1:00 AM. The balance of the shipment was picked up and delivered the following Monday morning.

Our photos shows the two widest pieces on the trucks with Mount Rainier in the distance outside the terminal gate. They had to wait there until 1:00 AM before they could depart. The cylindrical piece was transported during the day on Friday. Since it was 450 cm wide it could move during the day.

We are grateful for the help of our trucking partners. Omega Morgan handled the large piece delivered at night (2:00 AM Saturday). United Motor Freight handled the 8 other pieces 2 were night deliveries as well. We also want to thank the people at the Port of Tacoma at the pier and management who worked very closely with us.

The Thunderbolt team of Linda Serio in our Commercial Rates Department and Cathy Murphy in our Import Operations Department teamed up to provide excellent service for our customer. It was truly a team effort.

Thunderbolt Global featured in AJOT

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Read Paul Abbott’s article in the Nov-Dec 2021 issue of AJOT:  Planning, innovation help meet challenges in shipment of project, breakbulk cargos

View the article.  (Right hand page)

 

Thunderbolt Global Logistics International & Domestic Thanksgiving 2021 Transportation Update

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GLOBAL LOGISTICS ISSUES  

It’s Thanksgiving time in the United States.  The 4th Thursday of November is a day for family and football.   It’s a day we should relax and not think about the continued transportation crisis in the United States and abroad.     It’s been nearly 4 months since my last update.  Has much changed since the 4th of July?

I liken it to the movie Groundhog Day.  We wake up every day and the situation hasn’t changed much at all.   Port Congestion, Truck driver shortages, vessel space problems and high import ocean freight rates are still with us.

The mainstream media has finally caught to what is happening in our world.  We’ve been dealing with it for over a year.   Now shows like 60 Minutes and newspapers like the New York Times and Washington Post are full of articles about the supply chain bottlenecks and increases in shipping cost that is helping to fuel inflation in the United States.   As if we didn’t know already.

We still have lengthy delays on shipments coming into the United States from Asia and Europe.   The Ports of Los Angeles and Long Beach are still seeing length berthing delays and cargo pile up at the port.  The introduction of an “Excess Container Dwell Fee” effective November 29th is essentially super demurrage that the ocean carriers will pass on to importers.      Hopefully they will never charge this fee as will just get passed on to the importer by the ocean carriers.    On the East Coast the Port of Savannah is experiencing their version of congestion with up to   20-25 container ships anchoring off shore waiting to berth at Garden City Terminal.

Ocean carriers are making record profits and providing lackluster customer service and vessels that are rarely on time.   Quarterly earnings are in the billions of dollars for many of the ocean carriers.   Instead of giving us quality customer service many of them are impossible to reach on the phone or you have to wait nearly an hour to talk to a live person.  It just makes our job harder.

I do want to give a shout out to Independent Container Line (ICL) who value schedule integrity more than any other carrier in the market.  They are rarely late into and out of their 2 USA ports of call (Chester, PA and Wilmington, NC).    Customer service from ACL (Atlantic Container Line) is consistently one of the best.

Trucking capacity is a major pain point for the entire country.    There are very few ports/inland rail ramps that are immune to the driver shortage for those truckers that pick up and delivery containers.    It’s a real crisis in nearly the whole country.     We try to utilize secondary inland locations like Worcester, MA for Northern New England destinations and Council Bluffs Iowa (Omaha) for origins/destination is that part of the country.     We try to avoid Chicago and New York if we can due to the capacity crunch in those markets.

The chassis shortage all over the United States are ports and inland rail terminals is not going away anytime soon as production delays in the United States have stalled delivery on new chassis to the second half of 2022.     In most countries around the world chassis are owned by the trucking company.  In the United States very few trucking companies have made the investment for a variety of reasons (space in their yard, cost, maintenance requirements).

Import air freight rates to the United States are still at a high level due to the lack of passenger flights worldwide.   European and American airlines should be adding passenger flights since the U.S. opened up to vaccinated travelers. There still isn’t enough belly space in passenger planes to meet the demand.

Air rates from China/Asia have climbed to record levels due to high demand for air freight.  Since ocean rates are so high many importers are using air freight.    Rates over $12.00/kg are not unusual from Shanghai to some destinations in the United States. All told it’s a daily challenge to meet the requirements of our customer and our overseas partners. We are fighting hard to deliver the service that you all need.

Hopefully the day will come in 2022 when we will wake up and it won’t be Groundhog Day. Ocean rates will drop to a more reasonable level from all origins around the world. We will see more chassis available all over the country.   We will have more drivers available to move our shipments from Point A to Point B. Ocean carriers will provide a higher level of customer service.

EUROPE TO THE UNITED STATES

Full container shipments from North Europe and the Mediterranean region are still severely overbooked to the United States.  Germany in particular is in a difficult place right now as there are container shortages, trucking capacity problems and overwhelmed terminals in Hamburg and Bremerhaven. Hapag Lloyd is the carrier that seems to taking bookings and then short shipping containers due to space issues.

We still recommend that any importer tell their suppliers to make their bookings at least 30 days in advance to secure space.  Last minute space is really impossible right now.    Be prepared for continued higher shipping costs and space issues from Europe in 2022.

We are utilizing RO/RO carriers to move cargo that may be possible to containerize on mafi trailers from Northern Europe.  Due to the computer chip shortage the RO/RO carriers have more space for static cargo since cars are not being shipped in normal volumes.

ASIA to the UNITED STATES

Imports from all over Asia into United States are still going strong.   Space and available equipment are very difficult right now from all countries in Asia.   Rates had been over $20,000.00 per 40’ standard/HC container from some origins in Asia to the east coast of the United States.    The rates have softened some but they are expected to climb as we get closer to Chinese New Year February 1-8,2021     Ports like Xingang and Dalian in Northern China that rely on feeder vessels to marry up with mother vessels from ports like Busan or Shanghai are severely backlogged with space very hard to obtain.   If there is a Covid outbreak in any port in China it can stop that port from operating at capacity for up to 2 weeks and cause major vessel delays.

Space to the Port of Baltimore is very difficult these days.  Even though Maersk Line started a new service this fall from Vietnam and Ningbo/Shanghai direct to Baltimore the vessel size is small (around 4000 TEU’s) space is still hard to find.    Maersk and Mediterranean Shipping have a direct call to Baltimore as does Evergreen Line (with partners Zim, OOCL, Cosco and CMA CGM) however they limit space to those carriers.

This has caused us to utilize New York or Norfolk when we can’t get space to Baltimore.  Our friends at the Maryland Port Administration have been made aware of this issue and they are talking to the ocean carriers to see what they can do to add additional allocation to Baltimore.

The carriers are still charging cancellation fees of up to $1,000.00 if a confirmed booking is not used or a container misses a cut off at the port.   Be certain you have a supplier that is ready to load if a booking is made.   Space should be booked 3-4 weeks or more in advance to get the process going.

Ocean carriers are still trying to get the empty containers back to Asia at the expense of loaded exports from the United States.   Import rates from Asia are 6x higher than export rates to Asia.    We don’t see this trend changing in the near future.  Space from India to the United States is also at premium as well with rates that continue to climb.

Med Shipping did add a new service from India that will call the Port of Baltimore directly.  Even with that there is high demand and not enough space from the Indian Sub Continent to the east coast of the United States.

EXPORTS FROM THE UNITED STATES TO ASIA AND EUROPE

Container availability at inland depots is still a problem.  Vessel schedule delays are causing cut offs to change at inland depots and ports and this can add costs for shippers that have already loaded their containers but they can’t be returned to the rail terminal or port due to a change in the earliest return date.   Space to Europe and Asia for full containers is difficult.   Bookings should be made at least 3 weeks in advance.

Exports to Europe are difficult now. Hapag Lloyd is really causing problems as they are leaving cargo behind on a regular basis and splitting bookings.  Vessel schedules are in flux due to weather and port congestion.   Some carriers have stopped calling the Port of Savannah on some trade lanes due to delays there.  Space is still tight to Middle East ports in Saudi Arabia and the Persian Gulf.

PORT CONGESTION ISSUES IN THE UNITED STATES

The port congestion problem on both coasts are still happening.    This is what a lot of people are hearing about on television and on line.    Vessels are still waiting to berth for up to 2 weeks in Long Beach/Los Angeles and Oakland.   There are over 90 vessels waiting to dock in Long Beach/L.A.    It’s even impacting the Northwest ports of Seattle and Tacoma.

Terminal congestion is a major problem as it’s taking several hours for truckers to pick up or return containers to the port.  This is adding a cost to both imports and exporters when truckers have to wait for long periods to pick up or return containers.      Most main seaports on the east coast are experiencing terminal congestion though it is easing somewhat in ports like Norfolk.

Savannah has the most congestion problems on the east coast with vessel berthing delays.   This has caused some ocean carriers to omit Savannah and utilize Charleston.

The Port of Baltimore is actually in very good shape right now.  We just the steamship lines to bring their vessels here.

The Port of Philadelphia has seen a large uptick in cargo volume and that has caused a strain on truck capacity.    The Port of Boston lost its direct call from Asia when the shipping lines stopped the service due to the delays in Savannah.

The Port of Norfolk had some major delays with rail moves about 4-6 weeks ago but now containers are moving relatively quickly once discharged from the vessel.   Norfolk is a main gateway to Chicago, Louisville, Cincinnati, Columbus and Cleveland.

The Port of Miami and Port Everglades are still seeing major problems with congestion and truckers not being able to get in and out of the port due to lack of available appointments.    It’s been bad there for months.

The Port of Houston is still having congestion and also chassis problems which impacting the pick up of containers at the port.   The port is eagerly trying to woo more carriers from Asia to call on Houston and bypass the west coast.

CANADIAN PORTS

The Port of Vancouver is recovering from a massive rainstorm that caused mudslides on the main rail and truck routes going from and to the port.   The roads and rail routes have just opened up and there is a major backlog of containers at the port and vessels waiting to discharge.  Expect delays in and out of Vancouver for several weeks.

INLAND RAIL RAMP LOCATIONS IN THE UNITED STATES

Chicago, Detroit, Minneapolis, Kansas City, Memphis and Columbus, OH are inland terminals that have so much volume that truckers can’t keep up.     The chassis shortage has caused containers to pile up at the rail yards and a lot importers are facing heavy rail and steamship demurrage costs.    Chicago is still a major choke point in the country.  We are looking to utilize alternate rail ramps when possible to avoid these difficult locations.

TRUCKING ISSUES IN THE UNITED STATES

Container drayage problems are still problematic at most ports and rail terminals.    Truckers don’t have enough drivers to handle the continued surge in imports.   We are seeing some truckers booked out for 4-5 weeks in many locations.    Chicago still has a chronic truck capacity problem.  Kansas City, Detroit, Louisville, Memphis and Columbus are difficult.    New York is also a port experiencing a huge surge in import volume and the truckers and warehouse can’t handle the volume.

On the west coast it’s very bad in Los Angeles/Long Beach for local moves.  A lot of large importers have set up transloading centers to move their cargo inland on domestic trucks instead of waiting for the containers to arrive in inland rail locations like Chicago & Memphis.

The chassis shortage situation is also compounding the problem everywhere.      Truckers that are using chassis on a daily basis are keeping them and paying the daily costs to keep their trucks moving.