Freight Forwarding and the West Coast

The final agreement between the Pacific Maritime Association and International Longshore and Warehouse Union is expected to be ratified May 22. The union caucused in early April with 78% of 90 members voting to recommend ratification.

Meanwhile, work at ports continues and congestion is decreasing. The Ports of LA/Long Beach had just seven vessels in the harbor in early April. What's next for freight forwarding?

  • Dwell times will continue throughout the year caused by port infrastructure problems; chassis equipment constraints; and larger vessels in service.
  • By midsummer carriers may be looking for market share into U.S. west coasts to fill their vessels. This usually means lower rates to pull volume away from Vancouver and Prince Rupert.
  • Hefty increases in truck driver wages are expected to propel truckload rates higher in 2015 and beyond, potentially pushing pricing up by double digits. Truckload rates may need to rise as much as 12 to 18 percent to pay for higher driver wages.
  • Why? Driver pay rates must increase to attract the type of candidates needed to haul freight. On top of that, a host of new driver-related regulations will make hiring truck drivers harder and more expensive.

Plan for summer freight now. Contact us by email or phone call to discuss your supply chain needs.

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