Americas
October 10, 2024
On the ocean
We've been managing capacity as best as possible given unprecedented circumstances to support our customers and keep their cargo moving. We encourage you to continue to communicate with our dedicated sales organization and provide accurate forecasts. Accurate forecasts will support better deployment of our capacity across our trades and in turn better support your business.
In addition, given port congestion and labor constraints at some of our ports in North America, please consider delivering your cargo following cut off guidelines (taking into account washing and fumigation timelines). As a result, we kindly ask you to consider delivery of your cargo as close as possible to receiving cut off (vessel ETA). This will allow us to better utilize space at our ports and terminals as well as allow for more efficient vessel loading and unloading operations. Early delivery of cargo is causing high inventory levels and it is impacting our efficiency and flexibility to operate our vessels.
In ports and terminals
Port operations are working very hard to ensure safe and efficient service in our ports. High occupancy levels at some of our key ports, as well as very low pick-up rates, are some of the main challenges. We are continuing to work with partners to mitigate further delays and ensure safe and efficient vessel operations.
Baltimore: Operations are back to normal and there are no longer any restrictions for booking cargo to Baltimore.
New York/Newark: The port is at full capacity due to construction work on the port authority's ramp expansion project. Exports of POV continue to be restricted. However, when these restrictions are lifted, capacity issues are expected to worsen.
Brunswick: As GPA continues to complete the much needed striping, marking and paving , the terminal conditions continue to improve. Recent Hurricanes have impacted terminal receiving/delivery and vessel operations the past 2 weeks.
Charleston: HLT (Terminal) has begun container operations. Possibility of vessel delays on the Eukor Asia trade that will be calling there. No significant delays thus far.
Galveston: Vessels are now calling Berth 32 due to the port’s improvement and expansion project. While productivity will be impacted due to being further away from our terminal, operations have been successful thus far. The space issues have improved for the first time in several months.
Tacoma: The port is currently experiencing vessel congestion due to high volume of manufactured cars from Asia, but this is steadily easing in some cases. There continues to be a shortage of railcars, which is further impacting our operations. As a result, we anticipate delays ranging from 1 to 14 days for certain vessels.
Port Hueneme: The port is experiencing congestion, which has raised the risk of delays. Vessels carrying OEM vehicles from Asia, in particular, are experiencing extended wait times, with delays potentially reaching up to seven days.
San Diego: Moderate risk of vessel bunching-related delays up to 7 days+.
Vancouver: Congestion improving with moderate risk for vessel bunching related delays
Panama: The Panama Canal has made significant progress toward normal operations. Gradually returning to normal, the canal has increased daily transits and draft levels.
Recent healthy rainfall has restored the canal to near full operating depth, almost reversing a period of drought-related restrictions.
The Panama Canal Authority expects to maintain its average number of transits despite unpredictable weather conditions, thanks to the new reservoir project on the Indio River.
The project, estimated to take six years and cost around $1.6 billion, will provide the canal with a more stable supply of water during the dry season and periods of low rainfall.
Mexico: The increase in car volume has caused congestion and delays in docking at the port of Lazaro.
Caldera, Costa Rica: The current situation is quite challenge, now with the start of the cruise vessel season, the priority for container vessels is still a concern. The fact that we have been able to work on opportunities when container vessels aren't arriving is a positive, but our large volume exceeding terminal capacity, resulting in cargo being discharged at multiple port calls and spending more time than usual at port.
Colombia: We are readjusting our vessel schedules as originally planned following the end of the truck driver strike.
El Salvador: The Port of Acajutla in El Salvador is currently undergoing various repair and maintenance updates. Phase I of the port's infrastructure upgrades is expected to be completed by the end of 2024. Right now, we are experiencing 3.5 days per call.
At our processing centers
Vehicle processing:
Operations: Our port processing centers are open and operational. As production continues to be disrupted, we continue to be flexible in the services we offer, and how we organize our sites, as well as seeking additional storage options where necessary.
Mexico: All facilities remain open and fully operational. We continue to work closely with plant production and vehicle distribution areas across every facility nationwide to ensure resources are effectively adjusted.
Canada: We're experiencing record-breaking volumes at our Richmond and Annacis ports, exceeding forecasts. Infrastructure improvements are underway, and while this temporarily reduces capacity, we're managing increased volumes through added staff and partnerships with shipping agents and railroads. There may be constraints on vessel discharges due to this surge.
Equipment processing:
Operations: Our equipment processing centers in the U.S. and Panama are open and operational, though with reduced staff in some locations to reflect demand.
Capacity: We continue to see strong volumes at both our on-port and off-port EPC sites and encourage our customers to both look at their upcoming forecasts and any planned changes to assist planning for our operations teams.
Inland distribution
Keen Transport’s trucks are operational and deliver units to and from ports, plants and dealerships. The regional maintenance facilities are open to keep the fleet on the road, as well as our permitting team to secure necessary approvals.