July 10, 2023
Lori Ann LaRocco
The rerouting of containers also adds days to the delivery of products. For the auto industry, which runs on lean just-in-time schedules, these delays can affect production.
Paul Brashier, vice president of drayage and intermodal at ITS Logistics, told CNBC the company is already seeing widespread rebooking of containers from western Canada to U.S. West Coast ports in Seattle, Oakland, Los Angeles and Long Beach.
“These options are getting freight back into the supply chain, but these solutions are adding additional touches and modes of transport, which is pushing costs up as much as 50% to 60%,” Brashier said. “Even unaffected containers will be affected as the newly rerouted freight will congest markets with additional volumes that were not planned for.”
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