Phone: (818) 709-7070 | Fax: (818) 709-7171 | Email: email@example.com
COVID-19 Related Shipping, Transportation & Freight Challenges
Following up on the e-mail was sent out in November (in case you cannot find the e-mail please click here) the ongoing Covid-19 situation is still causing a variety of supply chain disruptions, including a heavily strained global logistic & US trucking industry.
Goods arriving from other regions are also facing significant delays.
We are hopeful to work with you, despite these conditions, to provide you the products you need within your preferred delivery timing.
Please find the following update regarding challenges within the transportation market across the United States.
Trucking capacity is even tighter than we experienced in 2018.
The pandemic has shifted spending in the U.S. economy from services to durable goods, resulting in a surge of retail imports.
The port of Los Angeles/Long Beach and the Port of NY/NJ are extremely congested:
- Many ships are waiting to anchor in Los Angeles.
- Railroads are beginning to embargo export container freight to LA/LB.
- Chassis shortages and port inefficiencies in Long Beach (CA) are causing extremely long wait times for drayage carriers moving freight in and out of the port.
The transportation market continues to see more drivers exiting the profession than new drivers entering, thus experiencing an overall loss of availability.
- At the height of the pandemic, the industry lost nearly 100,000 drivers.
In order to provide you with the best service, and try to meet your preferred delivery dates, we recommend placing orders promptly. Lead time is necessary more than ever.
Please consider the following minimum lead times:
- 10-30 delays of shipments of local stock replenishments / inventories arriving into the US face delays from back log [sea vessels and port congestion] which is causing certain products to be on allocation. This allocation process also effects pending blanket orders that are in house. Which we will be our outmost diligence to stay in touch with your purchasing to notify them of any necessary changes.
- 15 days additional lead time for non-stock items to be released from port.
- 5-7 days for truckload orders for materials in the US warehouses ... and longer for less than truckload orders
Please be assured that we will always check for trucking availability if your managed transportation is impacted or if you need your order sooner, and we will do everything possible to meet your requests. However, we want you to know the reality of the situation and the importance of providing lead-time so that we can better meet your needs. Once you have provided the requested delivery dates, please try to minimize additional changes as that may put transportation coverage at risk. While these issues certainly present us all with challenges, we are exploring several options across the transportation sector to improve the situation, and we are hopeful to overcome these issues together to best provide you the services and products you need.
As always, ARGAN Co. will diligently work to minimize the impact of this situation and are committed to providing the best service to our customers.