Shifts in the global supply chain are taking place simultaneously as the Panama Canal's operations strain due to drought. What does this mean for shippers in the drayage market? Grains might be down, but East Coast and Gulf Ports of the United States are in a  favorable position to minimize the impact thanks to some seemingly unrelated shifts in the global supply chain. So, what does grain, electric vehicles, and China's national security have to do with it? Read on to find out. 

So, what's the big deal with the Panama Canal?

Did you know that a staggering 40% of all containers originating from the United States travel through the iconic Panama Canal? This engineering marvel connects the Atlantic and Pacific Oceans. This is a critical point for U.S. imports and exports, so shippers need to pay attention as the drought will likely affect operations through the end of 2023.

U.s. transit & panama canal facts to know

• The U.S. accounts for just over 73% of traffic for the Panama Canal.

Don't take shipping containers for granted. They are one of the top inventions to revolutionize the trucking industry. Shipping containers streamline transport between different modes by providing a standardized yet extremely versatile solution. These containers can be seamlessly transferred from ships to trucks to trains without the need for unloading and reloading cargo.

What would freight coordination be like without them?

Without the invention of shipping containers, the transportation and logistics industry would still rely on labor-intensive and inefficient methods of handling cargo. Goods would need to be individually loaded and unloaded. Imagine the amount of lumpers that would need to be paid on every load between the different modes of transportation. Think about that the next time you are pricing out drayage or planning imports/exports.

It's time we delve into the evolution of containerized shipping and the inventions that paved the way for the rise of shipping containers and their impact on trucking.

The difference between east coast and west coast ports

Recent disruptions across Total Terminals International (TTI) ports on the West Coast shut down 6 major ports: Seattle, Tacoma, Oakland, Hueneme, Long Beach, and Los Angeles. Detrimental reactions to labor contract negotiations breed unpredictability and concerns for the west coast ports. Still, there is some relief as a tentative agreement was reached this past Wednesday.

“We are pleased to have reached an agreement that recognizes the heroic efforts and personal sacrifices of the ILWU workforce in keeping our ports operating,” said PMA President James McKenna and ILWU President Willie Adams in a joint statement. “We are also pleased to turn our full attention back to the operation of the West Coast Ports.” 

-- Statement from the Pacific Maritime Association
June 14th, 2023

Don't wait for the next shutdown to familiarize yourself with the distinctions between U.S. seaports, their key players, and the improvements being made...or at least attempted.

Have you caught yourself wondering about one of the latest buzz words in the industry,
“reshoring”? Maybe you’ve heard that we need to “bring business back to America” or something along those lines. Bringing business back means companies are transporting products and manufacturing back to America, which is why it can greatly impact the ports and drayage market.