Transportation Issues
Transportation Issues Abound, But Logistics companies that transport U.S. lumber to ports overseas met with some turbulent waters in 2021, especially when it came to the supply chain problems. One respondent to this survey called the industry “erratic.” However, another transporter said, “The shipping volumes have been steady in the 4Q, maybe slightly less By Matthew Fite due to the shipping interruption caused by the Chinese New Year. The first quarter of 2022 should remain consistent since the demand for North American Hardwood is still strong.” Another said, “(We) remain confident in our ability to handle even the most difficult transportation issues.” 24 FEBRUARY 2022 n NATIONAL HARDWOOD MAGAZINE
Stephen A. Zambo Ally Global Logistics Weymouth, MA The shipping industry, since March of 2020, has been what I would describe as erratic. We have not seen stable pricing or accurate schedules for well over a year now. Now the only thing about freight prices is that they are higher than they have ever been. What I believe is the largest issue is the lack of vessel reliability. Dates on every vessel are shifting up to three weeks, and on average we are seeing ETA’s delayed about 16 days. This has presented major problems, as it is impossible to accurately schedule truckers to pick up or deliver loads when you have no idea when the vessel will actually be receiving freight. The lack of accurate information puts pressure on loading facilities to have product ready to go at any time while eating up valuable space. It puts pressure on truckers as they need to schedule import deliveries/picking up empty containers while ensuring they remain compliant with various regulations (such as how many hours a driver can consecutively be on the road). This puts pressure on freight forwarders who need to submit shipping instructions to avoid being rolled, even though the vessel may not be receiving for another week. The “good” thing is that we are all in this together, and everyone now understands how vital a smooth supply chain is. The “bad” thing is that I do not see this going away in 2022 without a lack of freight demand to clear up the entirety of the supply chain. As long as we continue to see various ports and countries shut down due to COVID-related issues, we are going to continue to see disruption on some level. The only way to combat the fluctuation in schedules is through building more partnerships through the supply chain and constantly communicating to all parties involved what the updated dates are. This is a herculean task as many steamship lines forgo advising shifts altogether until it is too late. At AGL we spend a minimum of 40 percent of every Please turn to page 40 FEBRUARY 2022 n NATIONAL HARDWOOD MAGAZINE 25
