DOT Reports West Coast Container Import Gains, Increases Demand for 3PLs

The Biden administration announced progress on Wednesday in its efforts to assist importers and container vessel operators in navigating changes in freight flows. This includes the publication of new information from inland rail terminals and warehouses to aid in understanding shifting import trends.

Data collected through the U.S. Department of Transportation’s Freight Logistics Optimizations Works (FLOW) initiative indicates an increase in U.S. West Coast container volumes, largely attributed to detours around the Red Sea and transit blockages through the Panama Canal. The Department has been actively engaging with supply chain stakeholders to manage these changes, particularly in response to disruptions caused by Houthi attacks in the Red Sea and reduced traffic in the Panama Canal due to drought conditions.

FLOW, launched in March 2022, aggregates information from participants on container freight imports, starting with importer purchase orders. Current participants include major U.S. container ports, ocean carriers, and retailers. Allison Dane Camden, overseeing FLOW, reported a growing awareness of the impact of Red Sea attacks on supply chains during industry calls, with early signs of increased container traffic to the West Coast.

Jesse Whitfield, director of global ocean freight at UPS and a FLOW participant, highlighted the value of FLOW’s detailed import views in enabling companies like UPS to adapt their distribution networks and routing strategies effectively during disruptions. While acknowledging room for growth, Whitfield noted the importance of directional insights provided by FLOW data in navigating uncertain freight conditions.

Inspired by: https://www.freightwaves.com/news/dot-confirms-boost-in-west-coast-container-imports?oly_enc_id=2915B6577389I0W

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