Severe Winter Weather and Alliance Reshuffles Compound Delays
The Port of Vancouver, in western Canada, is facing increasing congestion, with conditions expected to worsen in the coming weeks. A combination of restricted inland rail access and deteriorating liner schedule reliability is disrupting supply chains, leading to longer vessel wait times, rising import dwell times, and delayed cargo movement.
The Current State of Congestion
- Rail Restrictions Slowing Cargo Movement: Canadian Pacific Kansas City (CPKC) Rail and Canadian National (CN) Rail have imposed tiered operating restrictions in response to severe winter weather. These measures include shorter train lengths and reduced speeds, leading to delays that could persist for another 10-14 days. Import dwell times have risen to 4.1 days.
- Terminal Utilization Reaching Critical Levels: Terminals are reporting 102% capacity, leading to up to nine-day berth delays for incoming vessels.
- Chronically Late Vessels Contributing to Delays: Around 25% of vessels at Vancouver are waiting for a berth, with some vessels having been delayed for weeks before even arriving. Notably long wait times include: MSC Utmost VIII – 11 days YM Tranquility – 10 days Maersk Monte Olivia – 9 days Marcos V – 9 days Some vessels, such as MSC Elisa XIII, have recorded 16 days of waiting, with indications of repositioning adding further complexities to berth planning.
So What’s Causing the Delays?
- Liner Schedule Disruptions: The ongoing reshuffling of shipping alliances is causing vessel delays and unpredictable arrival schedules. Some ships are arriving over two weeks late, leading to cascading delays as ports prioritize vessels that have maintained more reliable schedules. For example, the 6,350 TEU Maersk-operated Marcos V was 16 days late at Prince Rupert and arrived at Vancouver 28 days behind schedule.
- Increased Berth Management Challenges: Berth planners at Vancouver are facing difficulties managing vessel arrivals due to unpredictable ETAs from late and rescheduled vessels. Ports are often at the mercy of liner customers, as vessels flip-flop ETAs, disrupting planning efforts.
What This Means for U.S. Importers and Shippers
- Longer Wait Times and Delayed Deliveries: Shipments moving through Vancouver for imports and exports will experience delays in the coming weeks. The backlog at the port will impact supply chain schedules, leading to longer transit times for cargo moving inland.
- Increased Costs Due to Dwell Time and Congestion Fees: With ports operating above capacity, shippers may incur higher demurrage and storage fees as containers wait longer for movement.
- Greater Need for Flexible Routing and Logistics Planning: The combination of weather, rail constraints, and liner disruptions necessitates a more agile logistics strategy to ensure timely deliveries.
Alba is proactively communicating with clients who have routings through the port but if you're concerned about a specific shipment, please contact your local Alba office.
