Toronto, June 13, 2022
Congestion at ports and inland terminals across Canada remains an ongoing hurdle for importers anxious to receive their shipments. The Ports of Vancouver, Halifax and Montreal are all dealing with excessive volumes, resulting in the delay of cargo moving to inland terminals. Once cargo does arrive at destination terminals, cartage companies are also having difficulty efficiently handling the volume, resulting in a severely compromised logistic chain. Many trucking companies are overbooked and are only able to schedule deliveries 1-2 weeks from arrival date, and because of the long waiting time at terminals, carriers are increasing their hourly fees for waiting time. As a result, shippers' costs are increasing as their shipments are subject to waiting time, rail storage, yard storage and chassis detention fees due to the congestion issues now present across Canada.
There does not seem to be any relief in sight, as cargo volumes are expected to increase with the reopening of China after Covid-19 lockdowns, and the subsequent arrival of pent-up orders. Coupled with this is the typical summer/fall peak season, which occurs on an annual basis, as shippers stock up with inventory in advance of the busy fall/winter retail seasons. This sudden uptick in demand for freight services is expected to cause renewed pressure across the entire supply chain and exacerbate the congestion problems now being experienced.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.