PRIMO LEADING NEWS
WEEK FEBRUARY 26TH TO MARCH 2TH, 2024
The Panama Canal plans to maintain current vessel transit levels until at least April, assessing water levels post-dry season. Recent attacks in the Red Sea have increased demand for transit through Panama. Despite this, potential further restrictions loom should rainfall disappoint. Maintaining a maximum draft of 44 feet remains crucial to avoid compromising shipping profitability. Transit restrictions may lead to a significant toll revenue reduction, with an estimated loss of 1,500 vessels in 2024 compared to normal conditions. In navigating these challenges, PRIMO stands ready to assist you by offering expert guidance and alternative routing solutions to ensure efficient and cost-effective transit through the Panama Canal.
A recent FMC 4-1 ruling continues to disrupt chassis supply, increasing costs for shippers by limiting negotiation power for chassis pool operators. Specifically, the ruling said that oceangoing carriers designating exclusive chassis providers for port-to-port moves, also known as merchant hauling, violate federal law. This decision directly impacts shippers’ margins by potentially raising logistics expenses. PRIMO is in a favorable position to reduce reliance on these affected carriers by offering a more comprehensive network of providers that work both near and outside of ports.
The Port of Savannah continues to be a crucial juncture for companies more than 250 miles inland. The port recently reported a 1.5% increase in TEU volume for January, and the Roll-on/Roll-off operations have also increased. The demand is likely to increase as global tensions lead to changes in vessel berthing schedules. PRIMO’s continental coverage is perfect for this situation, offering intermodal solutions near the port and access to inland coverage options, including full truckload and less than truckload, as well as drayage needs too.
Houthi attacks seem to escalate Red Sea risks in the eyes of major companies, leading insurers to exclude war risk claims and affect shipping routes and costs. PRIMO’s risk management services could help shippers navigate the costs of such problems, offering alternative routing and insurance solutions to maintain operational efficiency and cost control for shipments further down the line in North America. Additionally, PRIMO’s coverage across Mexico, including recent route additions, helps shippers avoid this problem entirely in the future by offering a reliable solution to those needing to nearshore their supply chains too.
Severe flooding from a winter storm closes Santa Barbara Airport has once again brought climate into the discussion around logistics. The flooding is likely to lead to additional delays for shipments coming into or out of the South California area. PRIMO’s contingency planning services could offer robust solutions for shippers facing such disruptions, ensuring alternative logistics strategies are in place to maintain supply chain fluidity while also reducing risk to drivers and supply chain workers alike.
Severe flooding from a winter storm closes Santa Barbara Airport has once again brought climate into the discussion around logistics. The flooding is likely to lead to additional delays for shipments coming into or out of the South California area. PRIMO’s contingency planning services could offer robust solutions for shippers facing such disruptions, ensuring alternative logistics strategies are in place to maintain supply chain fluidity while also reducing risk to drivers and supply chain workers alike.
New research suggests that the e-commerce growth, hitting 10.2% CAGR by 2027, in combination with recent labor strikes, shortages, and broad market instability, will lead to problems in the future for e-commerce supply chains. Shippers need to start thinking about how their partnerships can lead to improvements beyond the direct savings or cost-avoidance strategies. For example, some might consider investing more into labor and wages if those costs can be extracted or otherwise saved from other parts of their business. The supply chain is one such area ripe for optimization, and it can help companies both mitigate higher costs while addressing other problems too. PRIMO’s capabilities do just that and enable shippers to realize cost avoidance opportunities while also enabling a more efficient process that meets or exceeds current technological standards.