Will Red Sea Challenges Impact Domestic Shipping?
Many have been aware of the ongoing challenges and conflict in the Red Sea, some may wonder if those challenges will have an impact on domestic shipping.
While it is hard to say how, if any, impact this has had (or will have) on domestic shipping, we are aware that the USWC has seen and may continue to see rate increases due to shippers feeling more “incentivized” to ship out West than to the East/Gulf Coasts, who are facing challenges due to the Panama Canal and Red Sea.
If you are concerned on how this may impact your domestic shipments, please feel free to reach out to us.
Trucking —
- As of January 8th, the national average price of diesel is $3.828. Seeing a 4.8 cent decrease compared to the week prior.
- Port of Los Angeles plans to add a near-dock chassis facility and container storage yard. The facility will be used for storing, maintaining and repairing chassis. Plus, a temporary storage yard for empty containers.
Rail —
- Rail capacity continues to remain plentiful, and rail transits are continuing to be at five-year averages, some even higher.
- Union Pacific is expanding their on-dock rail service at Port Houston – including access to four more inland markets.
Cross-Border —
Mexico:
- The Mexican Tax Authority will be enforcing the new Carta Porte compliance rules starting January 1st. This is for all modes of transportation on any cross-border and/or Mexico domestic shipments. Additionally starting January 15th, hazardous material shipments will be required to provide Mexico Hazardous Packaging Code and Mexico Unit Packaging Code, BNSF Railway said in a statement.
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