b'FEBRUARY 2024TOP NORTH AMERICAN EXPORTERS & IMPORTERS21(OPTIMISTICcontinuedThere have been recent reportsSome believe this congestion(SURGEcontinued fromshowing up in the numbers.from page 14) ofEuropeanmanufacturerscouldbeginwithinthenextpage 20) OConnell said he recently of Good Hope are adding 10shutting down because of theirfourtosixweeksafter(theattendedthe2024Uni-to 14 days or longer to theirinability to get materials. Chinese)LunarNewYeart heC aliFOrniane COnOmy fiedWine&GrapeSym-supplychainsonasailing,Gold,whohaspointedwhentradevolumesstarttoOConnellstated:TheposiumthattookplaceIn Goldexplained.Retailersout that shippers are lookingpick up again. CaliforniaeconomywillSacramento,California:And usingvesselsthatdischargetoshiftbacktoWestCoastTheNRFsupplychaingrow at a slower pace in 2024there they were rather downbeat to West Coast ports but haveports,fearsthesurgeinexecutive is also concernedthanithadlastyear(evenaboutprospectsofgrowthin East Coast markets will findcargo may cause congestionthatthelongertransittimethough)thereisnosignofwine exports because whilethemselves using intermodalwithout proper planning. HearoundtheCapeofGoodrecessionSo,thingslookthe premium wines coming out rail,headded.Therearepoints out that a significantHopewillputvesselsandprettygoodemploymentof Napaare being shipped also retailers who are lookingamountoffreightshiftedequipmentsuchasemptynumbers are good. Generallyabroadinbottlesalarge at using air freight to get theirawayfromtheWestCoastcontainersoutofposition.speaking,theeconomyasasegment of the trade is in bulk moretime-sensitiveship- ports during the most recentHesaidsomeretailersarewhole is in good shape. winesthat are now facing a ments to their destinations. labornegotiationsandthecomplaining that vessel spaceOConnell notes that theworldwide glut of wine. There cargo may shift back. isbecomingincreasinglythreatenedmovesofsomeiswaytoomuchwinebeing r etailerSF aCet Ough Weneedtomakesureconstrained,andthatsomeagricultural exporters to shiftproduced out there. And sol OgiStiCalD eCiSiOnS ourports,terminals,rail- carriers are canceling certaincontainerloadsawayfromthelow-costgrowersparticu-Retailers are facing toughroads, drayage providers andservices adding to capacityWestCoastportsandoverlarly those in [Californias] San logistical decisions right now,warehouses are ready for theconstraints. He did not citeto East and Gulf Coast portsJoaquinValleyfromLodi theexecutiveemphasized.increasedvolumes.Wearespecific markets. hasnotmaterialized:Itsall the way down past Fresno Retailersaremakingtheiralreadyhearingthatrailcarnotturningupintheoffi-are seeing less demand for keysourcingandtranspor- dwell times are starting to tickt her ipplee FFeCt cialU.S.tradestatisticsthe product that they are pro-tation decisions now for theup and railcar imbalances andGold is further convincedIve been monitoring that forducingThese arewines backtoschoolandwinterincreased demand could resultthat the Red Sea attacks andthePacificMerchantShip-that normally would travel holiday seasons. in more congestion and (fur- route disruptions will have aping Association [PMSA is ain large bladders holding up to Aside from extreme trans- ther)increasesindwell.Weripple effect and complicatetrade group]were just not25,000 liters. Youput those porttimedelays,retailersalso need to make sure there(OPTIMISTICcontinuedseeing substantial diversionsin a container andsend them aresuddenlysaddledwithis chassis availability as well.on page 22) of cargoesits not reallyoff to various locations.sharplyincreasedshipping costs, Gold warned. We have seensignificantincreasesin thespotmarket. Whilerates arenotashighaswesaw duringthepandemic,there are concerns about what this means for future rate discus-sions.Besideshigherrates, oceancarriersarealsoseek-ing to pass along different sur-charges and fees to customers, accordingtotheNRFstop supply chain official.Gold said NRF members certainly understand that the longervesseltimesimpact fuel, labor costs and insurance costsandmaritimeinsur-ance costs are skyrocketing- theywanttomakesurethe new fees and surcharges actu-ally cover real costs and are not intended for profit.Alaundrylistofnew surchargessoundsonerous. They include peak season sur-charges,transitdiversionsur-charges,warrisksurcharges, contingencyadjustmentsur-charges and emergency contin-gent surcharges, among others, Gold testified before Congress.Retailers are also extremely worried about the size of the surchargesandratehikes. Ive had one (NRF) member tell me they have had carriers ask for an increase of $1,500 to$3,000percontainer, whichrepresentsa38%to 73% cost increase for directly affected cargo, he said.We are hearing that the rates and surcharges are not just being appliedtodirectlyimpacted cargo, but to other routes such as Europe to the U.S. because of equipment availability.Itsnotjustthedisrupted transportationoffinished goods that are straining retailer supply chains, contends Gold. Wehaveheardfromsome (NRF)membersthattheir overseas vendors are starting to see some challenges with their abilitytosourcerawmateri-alsinatimelymanner. They areindicatingincreasedcosts fortheircomponentsaswell.'