ITS Logistics has released its forecast for the March US Port/Rail Ramp Freight Index, indicating strong import volumes at the Los Angeles/Long Beach (LA/LB) port following the Lunar New Year. The index suggests a potential increase in the trucking capacity-to-demand ratio, possibly leading to higher rates for drayage and rail capacity.
Additionally, exporters are facing challenges due to limited equipment availability, impacting various ocean carrier lines across North America. Paul Brashier, Vice President of Global Supply Chain for ITS Logistics, noted that if rates rise, truckers might struggle to maintain dedicated pricing and tender acceptance in the second quarter.
He emphasized the increased volume returning to the U.S. East and Gulf Coasts, now that labor strikes are not a factor. This surge has resulted in tighter capacity and increased terminal congestion at key gateways like New York/New Jersey, Norfolk, Savannah, and Houston.
On March 11, the International Longshoremen’s Association (ILA) extended its Master Contract with the United States Maritime Alliance (USMX) until September 30, 2030. This agreement includes guidelines for workforce protection and the introduction of technology that will impact capacity and efficiency.
There are stipulations regarding adequate training for workers on newly created jobs as a result of this technological integration. Despite the new contract, supply chain challenges persist, particularly concerning equipment availability for exporters, which has been an ongoing issue into 2025.
Brashier explained that the imbalance in equipment and railroad operations is driving the current challenges, with high dwell times for imports at LA/Long Beach and delays in rail transit leading some shippers to redirect imports to East Coast ports. As labor concerns diminish, import volumes have begun shifting from the West Coast to the East and Gulf Coast.
However, the recent proposal from the U.S. Trade Representative, which targets Chinese vessels with additional fees, poses a potential risk for U.S. port operations. The World Shipping Council has highlighted that these fees could reach up to $3.5 million per port call for most vessels entering the U.S., which could push carriers to abandon service to smaller ports, thus increasing congestion at major North American ports.
ITS Logistics continues to provide comprehensive transportation solutions across North America, ensuring distribution and fulfillment services to 95% of the U.S. population within two days. The full suite of services encompasses drayage and intermodal operations in 22 coastal ports and 30 rail ramps, among other logistics solutions.
The ITS Logistics US Port/Rail Ramp Freight Index outlines forecasts for container and dray operations for the Pacific, Atlantic, and Gulf regions, as well as domestic container rail operations for both inland areas.