Drayage Capacity Tightens as Import Volume Rises in June

The US containerized imports increased by 8.2% in June compared to the prior year, with a total of 2,400,627 20-foot-equivalent units, according to Descartes. This rise in import volume has led to a tightening of drayage capacity, with major ports posting mixed container throughput results. The Port of Los Angeles reported its busiest-ever June, with a 12% increase in volume to 1,002,734 TEUs. The strengthening of domestic intermodal demand and the decline in capacity due to enforcement actions have contributed to the tightening of drayage capacity. Taylor Harrington, director of North America intermodal at C.H. Robinson, attributed the improvement to several factors, including the West and East coasts coming back into balance and ongoing capacity reductions. The Department of Transportation’s tightening of enforcement of non-domiciled commercial driver licenses and English-language proficiency standards has also accelerated the decline in capacity. Other major seaports reported mixed results, with the Port of Long Beach seeing a 10.6% increase in container volume, while the Northwest Seaport Alliance and the South Carolina Ports Authority reported decreases of 4.4% and 3.5%, respectively. The Port of Houston and the Port of Oakland reported increases of 18% and 7.7%, respectively. The rise in import volume and the tightening of drayage capacity are expected to continue, with freight pressure moving faster into drayage, truckload, and rail networks.