IN THE NEWS: Red Sea crisis boosts shipping costs, delays – and inflation worries
CNBC
January 3, 2024
Lori Ann LaRocco
FROM THE ARTICLE: Ocean carriers are also expanding land-freight services for those using West Coast ports intead of the East Coast. This is a similar strategy deployed by Hapag-Lloyd during Covid, when it offered clients service across land to the West Coast from the East Coast because it was faster.
These diversions in trade will create opportunities for West Coast railroad companies, Union Pacific and BNSF, a subsidiary of Berkshire Hathaway. The extra containers will also be a boost for trucking companies that also service those ports.
...
“Coming out of the holiday break we are seeing significant volumes being routed from Asia to the U.S. West Coast and via the Panama Canal to the U.S. East Coast to avoid the Suez Canal,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. “We are forecasting this activity to increase as we get closer to the Lunar New Year peak season.”
Read the full article here.
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