December 19, 2014 | Industry Insights

West Coast Port Congestion Causes Holiday Havoc

Share This:

West Coast Port Congestion Causes Holiday Havoc

Retail executives, frustrated en masse by West Coast port congestion, say their goods are paralyzed in transit this holiday buying season and fourth-quarter sales numbers will suffer.

Port and ground transportation problems are causing delays, and it is now taking up to a month for shipments to clear ports, according to comments made to The Wall Street Journal by Tommy Bahama president and COO Doug Wood.

Contract disputes appear to be at the heart of the problems. The Pacific Maritime Association, which negotiates with the International Longshore and Warehouse Union on behalf of 72 member companies in shipping and terminal operations, says the union is purposely slowing down traffic, though the union claims delays are caused by port mismanagement.

As a result of the nearly six-month-long contract dispute and ensuing port delays, many retailers have begun routing shipments to East Coast ports. Others have turned to air shipments for relief but are facing limits imposed by package-delivery groups, such as FedEx, and elevated costs due to airfreight fees.

Congestion is hurting more than retail. A group of 61 agricultural enterprises sent a letter to the White House in November asking for government intervention in the contract dispute. The administration has said it doesn’t plan to get involved. The effect goes beyond our borders, as contracts abroad go unfulfilled and U.S. companies start looking like “shaky suppliers,” one agricultural exporter tells the Journal.

With port delays, goods awaiting offloading become more susceptible to damage and spoilage. Changing tracks to East Coast ports and airfreight seems to be the most reliable method at this point, but that kind of pivot requires a revamp of shipping insurance contracts among many other operational changes, including shipment reporting.

At Roanoke Trade, our professional brokers are prepared to turn on a dime when necessary to engineer new commercial cargo insurance contracts that respond to your alternative shipping needs. Providing accurate certificates of insurance to the right parties and working efficiently with shipping insurers to get new plans underwritten is our priority so you can get your cargo moving again.

Additionally, we can help you understand changes to your exposures as you adopt new shipping methods. Our Roanoke team works closely with our risk prevention experts to deliver informed and appropriate cargo insurance selections for every need.

We invite you to learn more about us, our experienced talent in this highly specialized area, our creative solutions, and the value we will bring to you and your clients. Please contact us at 1-800-ROANOKE.

Share This:

Related


Thank You to Karen Groff

We have important news to share with you. Karen Groff, President of Roanoke Insurance Group, has decided to leave the organization. Although our hearts are heavy with this news, we respect her decision and wish her all the best in her future endeavors. Karen played an integral role in Roanoke’s success over the past 30 […]

Corporate Communiqué, Industry Insights

2023 NCBFAA Scholarship & Application Announcement

Roanoke Insurance Group is delighted to once again sponsor a $5,000 scholarship to students intending to join the trade industry. The National Customs Broker and Forwarder Association of America (NCBFAA) offers this $5,000 scholarship award yearly and will be presented to the winner at the NCBFAA annual conference in April 2023. The topic for this […]

Industry Insights

What to Watch: Insurance, Regulatory Changes for Freight Brokers and Forwarders

By Glenn Patton, Managing Director, Roanoke Insurance Group Canada, Inc.   The following are several important issues regarding the insurance industry and regulatory changes that impact freight brokers and forwarders. With so many Canadian freight brokers and forwarders conducting cross-border business, U.S. regulatory changes affect the entire industry. Nuclear verdicts in liability cases in the […]

Industry Insights

Roanoke is the leading provider of insurance and surety solutions for transportation and logistics providers. In fact, we are recognized as the most reliable source for U.S. customs bonds.

Contact

If you have any questions or need help, feel free to contact with our team.

800-762-6653

US CORPORATE HEADQUARTERS

1501 E. Woodfield Road

Suite 400W

Schaumburg, IL 60173


CANADA CORPORATE HEADQUARTERS

390 Bay Street

Munich Re Centre, 22nd Floor

Toronto, ON M5H 2Y2

Solutions that Go the Distance.

© 2024 Roanoke Insurance Group Inc. A Munich Re company

Better Business Bureau logoCoverholder at Lloyd's logo