THE SHOW

MUST GO ON!

When you sit in my chair, the phone rings relentlessly. Not a day goes by when my team isn’t troubleshooting a shipment somewhere in the world. Maritime transport moves about 90% of global trade and it’s been strangled with struggles these past two years.

If you’re in the transportation business like PIBL, overcoming shipping setbacks is a daily routine. With all the deterrents now from vessel cancellations to equipment shortages, we feel a sense of triumph every time we tell customers, “your shipment will be there on time.” 

As the world learns to live with Covid-19, travel has ramped up this summer, and international exhibitors have returned to our nation’s trade shows. We’re proud to be part of the positive outcomes being experienced by some of the country’s most trafficked shows.

We consider the spring show COVERINGS to be an industry bellwether. This long-running tile and stone trade show draws great attendance, but due to the enormity of shipments arriving from global origins, it’s always logistically challenging. In this issue of The Rise, we’ll share our observations from Coverings and the Summer Fancy Food Show, along with ways that your business can set a course for on-time shipments, wherever their destination.

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Phil Hobson - President, PIBL

COVERINGS: 

What Everyone Can Learn From This Show

PIBL has served as the official freight forwarder and U.S. Customs broker for the Coverings show for more than twenty years. In 2022 PIBL made transport arrangements for 150 containers carrying nearly 4 million lbs. of exhibit booth materials destined for Coverings. What we experienced about how to navigate the still unpredictable climate of oceanic shipments can benefit your company if you are anticipating a presence at fall and winter events in the U.S.

Freight management traditionally performs as the quiet engine that ensures products are delivered in a timely way, but the pandemic threw a spotlight on the hurdles of transport. International exhibitors at Coverings faced spikes in prices, vessel uncertainty, and a myriad of other shipping issues that have frustrated many industries. Despite the widespread supply chain problems, nearly 70% of all exhibitors came from outside of the U.S.

PIBL worked with international exhibitors for more than nine months to plan their shipments to the Las Vegas Convention Center after analyzing the lead times that would be necessary. Phil Hobson explains, “Nearly a year before the show dates, I conducted meetings in Los Angeles that included U.S. Customs, USDA, as well as terminal operators and trucking companies. It was clear to me that we were going to need more advanced planning.”

Changing Course

PIBL arranged exhibitor shipments departing from Spain (the largest number of containers -more than 100- for the Spanish Pavilion), Italy, India, Turkey, China, Ecuador, Peru, Portugal, Taiwan, Vietnam, Greece, UAE, Thailand, Brazil, Japan, and Canada. 

With the Ports of Los Angeles/Long Beach choking with congestion in the early months of this year, PIBL alerted exhibitors they would not be able to withstand the anchor delays and container dwell times. PIBL recommended alternate ports (Houston and New York ) to avoid shipments being stalled in the waters off California. Containers coming into those ports were then transloaded into trucks heading to Las Vegas. 

Problems Persist

Even with the change in routing, PIBL encountered a string of problems. Compounding the port congestion, lack of chassis equipment, rail and storage space concerns, the trucking companies have lost experienced staff due to the pandemic (although trucker shortages have persisted since pre-pandemic years). PIBL was steadfast in follow-up (and helpful with guidance) as less knowledgeable long-haulers also handled equipment breakdowns that occurred over the 2,500-mile trip across the ten states from New York to Nevada. With fewer truckers, there’s a bidding war happening; some are increasing prices mid-trip or failing to meet commitments when they obtain more lucrative trips. 

Lessons To Be Learned

Despite shipping setbacks, the cooperation from international exhibitors regarding routing changes and higher costs helped PIBL to successfully manage sea and air freight shipments for Coverings. The strong economic lure of the U.S. market makes trade show attendance a priority for many foreign companies. 

Phil Hobson advises on the key takeaways from Coverings, “Many in the industry predict that we will not see improvement in issues of transport until 2023 or beyond. Our best advice is that it’s never too early to start planning. With time, we can help define better routes, schedules, and a network of more dependable operators.”

ON THE RADAR

Labor Negotiations and Protests Involving West Coast Ports & the Country’s Railways

Negotiations are underway between the International Longshore and Warehouse Union (representing 22,000 dockworkers at 29 West Coast ports) and the Pacific Maritime Association (representing ocean carriers and marine terminal operators). The current labor contract expired on July 1, 2022. All eyes are on these negotiations as both sides profess cooperation to prevent further disruption to the supply chain. However, many analysts believe the lack of space for ships at West Coast ports will continue for another year or more.

Last month, big-rig truckers descended on the Port of Oakland staging protests that disrupted the flow of cargo at the port for five days. The truckers were protesting a new state labor law that they believe will impede the ability for independent truckers to operate. An estimated 70,000 independent truckers in California may be affected by this legislation. The Port of Oakland has since created a “working group” of truckers and port officials to jointly review areas of concern with the new legislation known as Assembly Bill 5.

In other negotiations, the rail labor unions and carriers have been unsuccessful in resolving their dispute since January 2020. President Biden issued an executive order for a board of arbitrators to work towards a solution to the present stalemate, citing concern that it could substantially interrupt interstate commerce essential to the country’s supply chain. Currently shortages of rail workers and rail cars are contributing significantly to container backlogs at ports, particularly in Los Angeles.

Shift Towards East Coast Ports Causing Delays

As more sea shipments to the U.S. are being routed through the East Coast, ports from Savannah to New York are reporting longer wait times for ships to berth and unload containers. 

Presently it can take a 15 day wait at anchor in Savannah before some ships can unload their cargo. East and Gulf Coast ports are seeing sharp increases in port activity and are at near or full capacity. As of this writing, more vessels are waiting at New York and Houston ports right now than at Los Angeles and Long Beach, according to Seatrade Maritime News which evaluated The McCown Report by Blue Alpha Capital.



PIBL monitors all port activities to best advise clients on lead times for shipping and preferable ports.

Inflation and Shipping Costs

At PIBL we have seen fluctuating prices for freight rates for the better part of three years. Concerns about an imminent recession are mounting. While we are observing a reduction in freight rates for overseas sea shipments to the U.S., they are still about double the pre-pandemic rates. Soaring freight rates contribute to inflation, and at a high point in the past 36 months, companies were saddled with increases of 600% in shipping costs. Unsurprisingly, these increases were passed on to the consumer. We are hopeful that the current downward trend in sea freight shipping costs may help inflation drop.