Commerce Express Weekly Road Map: March 30th, 2021
Keeping you informed on the latest news/insights in our industry.
Will the US feel the effects of the Suez Canal being blocked by the Evergreen Ever Given?
This past week news swarmed of the Suez Canal becoming blocked by the massive Evergreen cargo ship. CBS reports that this block cost around $9 billion per day for the duration of the 6 full days it was stuck. As of Monday March 29th the canal is open and there are still 367 vessels now waiting their turn to enter the canal on either side. This kind of halt in supply chain is felt in many countries and industries, including the United States.
It is no surprise that the US mainly imports good from China, which thankfully comes from the other direction and does not need to use the Suez Canal. However, Forbes reports that there is currently 13 vessels waiting to pass through the canal on their way to the Savannah Port. This port has seen some major port congestion in the last few weeks, affecting LTL shipments in the southeast portion of the country. At this time, the Savannah Port is clearing up congestion concerns, there may be concern again once the 13 vessels are able to pass through the Suez Canal. While there is no set order at this time of ships entering the canal, the vessels may reach the shore of the Savannah Port around the same time, once again causing major congestion. As the Savannah Port works to deescalate the current congestion of 10+ ships, we will keep up to date on how this congestion continually affects domestic shipments.
Less Than Truck Load
While we gear up for spring, we would love to go over your upcoming shipments with you. With the delays and rerouting of international shipments, LTL & FTL shipments are being impacted. Our team is fully equipped and ready to get you the booking that you need. If you are in need of a new option, are curious about how Commerce Express can assist you with bookings, or have any general questions, check out our services here!
In an effort to expand trade between Canada, the United States and Mexico, there is a proposed merger of Canadian Pacific and Kansas City Southern. According to Freightwaves, this $29 billion merger would “create the first company with a rail network spanning all three countries and enhance the facilitation of the movement of goods across the three nations”.
This comes after the project that Kansas City Southern completed that connects Mexico’s port of Veracruz on the Gold of Mexico. This project was done to “make the port more competitive and productive for imports from the U.S., South America and Europe” according to Doniele Carlson, a spokesperson of Kansas City Southern. This merger, if successful could potentially change US rail routes in the South to accommodate for more frequent trips between the US and Mexico. As this merger proposal continues, we will keep Road Map up to date.
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