We understand the importance of your supply chain to your business’ success! Below are four key items you should be aware to help best plan for your inventory and transportation costs.

Pending Dwell Fees – LA/Long Beach

Since November 1st, we have reported on the “Container Excess Dwell Fee” directed by the Biden-Harris Supply Chain Disruptions Task Force which has continuously been delayed by the Ports of LA/Long Beach. The latest update is the Dwell Fee will now go into effect on Monday, December 6^th. The fee will be a graduated scale beginning at $100 on the 9^th day for containers terminating at the port and the 6^th day for containers waiting for the rail with $100 per day incremental increases. We have been working with our carriers both ocean and local trucking to avoid extensive wait time for our client containers. We will advise you if implementation of this fee is further delayed. 　

Vancouver

The Port of Vancouver has declared a State of Emergency due to extreme weather causing flooding and landslides. These conditions have greatly affected the railway system in the area. The CN and CP Rail are working and prioritizing containers to keep cargo moving thru Canada. However, inevitably these issues have caused vessel and terminal operations delays. Your Reilly team member will be in touch with you directly discussing delays and the impact to your specific shipments.　

Long Shoreman Contract

In the past, the Long Shoreman contract has wreaked havoc on container transport through LA/Long Beach due to work slowdowns while the contract is being negotiated past the time of expiration. Based on the current environment, which is impacting the country and the supply chain at unprecedented levels, the West Coast employers offered a one-year extension to the International Longshore & Warehouse Union contract. According to the Journal of Commerce, the offer was recently rejected by the union. In their response, “the ILWU indicated that with shipping lines enjoying record profits this year, 2022 would be a good year in which to conduct negotiations.” The contract is set to expire July 1, 2022. There is currently no discussions of slowdowns or strikes from the ILWU. However, the JOC did mention we, the manufacturing and the supply chain companies, should be concerned because “three of the past four contract negotiations did result in significant disruptions.” We want to alert you early, and we will keep you updated as this contract nears expiration.　

Highly Sought-After Reilly Calendars

The Reilly Team is extremely proud of the work we have been able to perform for our clients during this supply chain crisis. Unfortunately, we have not been immune to the manufacturing difficulties in the world. Every year we proudly supply our clients with a Reilly calendar specialized to help you align your inventory and manufacturing weeks with the shipping industry. These calendars have been delayed and will not be arriving until after the New Year. Please reach out to your Reilly contact to request a calendar or any additional calendars this year. As a reminder, our calendar is a four week format, including week numbers and is excellent for planning your supply chain functions, such as ordering and production.

We will continue to serve you with the knowledge to stay current on the status of the supply chain. Please reach out to your Reilly contact for any specific information or questions!

Wishing you and your families a wonderful Christmas and New Year’s!

December 3, 2021