David Rainwater, Sales Manager of Pacific Northwest, and Theresa Neff, Sales Manager of Northern California Division, return to share the latest news regarding congestion and supply chain disruptions. Although the spot market and consumer demand continue to soften, access to equipment and storage remain a pain point across the ports, resulting in per diem and demurrage costs.
David Rainwater: Hey everybody, David Rainwater and Theresa Neff-Stradamus here with GSC Logistics, Delivering Certainty. Theresa, the reason that I added that last little part on there is because there are so many of the followers of you know, some of the posts that we have, they want to get a sense of maybe what’s going on in the market currently. And then, also what that outlook looks like. And I thought, who better to talk about that than yourself take it away. Hey,
Theresa Neff: David, thanks for having me. And I wish I had a crystal ball. I mean the last two years have been crazy to say the least. And you and I have talked multiple times. So August does kick off peak season and usually historically this is a time where the market gets congested. There’s a lot of imports coming into the U. S. Obviously preparing for the holiday season. You know, we’ve experienced a few disruptions up until this point here in Oakland, where I’m located, there’s disruptions in the supply chain in Europe right now supports are congested over there and overall we’re still experiencing driver shortages, equipment shortages and things like that. But, as we move through peak and into Chinese New Year, I’m hoping that things start to stabilize a little and maybe clear up but that’s not to minimize what’s going on right now, and as these ports stay congested shippers are experiencing astronomical numbers when it comes to detention and demurrage. And you and I are both hearing this across the board.
David Rainwater: Yeah, absolutely. And it’s not something to be minimized this is going up to the highest levels of organizations. And CFOs are looking at these bills and wondering what’s going on. So while the spot market has softened, consumer demand has softened, There is still congestion at the ports. It might build a little as we move through peak season but let’s hope that some relief comes. Like I said, at the end of Chinese New Year and maybe next year, peak season might look a little more normal. You know, like circa 2019 I don’t know. Okay, Okay.
David Rainwater: You know what, I’m going to take that because what I heard was that even though we may not be there, as far as being back to normal, there is certainly a trend that’s moving us that direction. But there’s still some key indicators that let us know that we’re not out of the woods yet. Specifically, demurrage cost. Yeah, those are very impactful. So Theresa, thank you. Always good to get together with you and look forward to talking with you soon.
Theresa Neff: Thanks, David.