Apr 16

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US container shipping girds for new reality of under capacity

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Brian Kempisty, Founder, was interviewed by JOC this week.

The U.S. container shipping industry is grappling with a new reality of under capacity, as widespread congestion impacts major ports and inland distribution centers. According to Brian Kempisty, founder of Port X Logistics, this issue has escalated beyond the West Coast and spread across the country, affecting various markets. “On the West Coast, nothing has changed … it’s just spread around the country like a virus,” Kempisty noted. “LA was the epicenter, and then New York got hit, and then Norfolk and Savannah started getting hit, and now you have the rail ramps in Chicago and Memphis. It’s just an overwhelming amount of imports that seemingly has hit every single market.”

This nationwide strain is driven by a surge in import volumes, exacerbated by pandemic-induced shifts in consumer behavior and global supply chain disruptions. As cargo continues to flood into the country, ports and rail ramps are struggling to keep up with the demand, leading to increased wait times and logistical challenges. The situation underscores the need for improved infrastructure and more efficient logistics strategies to handle the unprecedented volume. Without significant changes, the U.S. shipping industry may continue to face severe bottlenecks, impacting both domestic and international trade flows.

Read the rest of the article here.

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