The year 2022 was a challenging one, and we anticipate that many of the difficulties we faced are likely to persist into 2023. Port congestion due to unprecedented freight volume, lack of chassis inventory, insufficient appointment availability at the marine terminals, and a chronic failure on the part of the ocean carriers to take back their empty containers — all circumstances beyond our control — created an operational nightmare and spurred a huge increase in the assessment of detention, demurrage, and per diem fees, driving up transportation costs.
One encouraging development was the passage of the Ocean Shipping Reform Act, giving the Federal Maritime Commission (FMC) greater authority to provide much-needed regulatory guidance. We experienced a high level of engagement with FMC Chairman Daniel Maffei and his Commissioners, who communicated with the intermodal community on a regular basis to gain a solid understanding of the obstacles that hinder supply chain efficiency. We’re hopeful that the rulemaking put forth on detention and demurrage billing will provide long-overdue relief from the unfair practices that have plagued our industry.
While container dwell continues to be an issue, we’ve started to experience some improvement, thanks to the Port Authority of NY-NJ implementing a container imbalance fee. There’s recently been an increase in the evacuation of empty containers, and we hope this compliance continues into 2023.
Looking ahead, we’re bracing for the potential impacts of limited diesel supplies, and working to maintain a robust workforce as freight volumes fluctuate due to falling rates. We must also continue fighting back against policy proposals that threaten the trucking industry — narrowly written labor laws coupled with aggressive emission mandates foster an atmosphere of uncertainty, particularly for owner-operators, who comprise the vast majority of the US trucking workforce. We must advocate for sensible solutions that support our industry and strengthen the supply chain.