Union Pacific shipping snafu amplifies shipping delays, as ocean shipping costs jumps 333%

AgDay 07/16/21 - Port Delays

Shipping snafus are gaining steam as congestion along one major rail system is causing shippers to halt hauling ocean containers from the West Coast. 

According to "The Journal of Commerce," the Union Pacific rail system is so congested in the Chicago area they are now refusing to haul ocean shipping containers out of ports from the U.S. West Coast to Union Pacific's Joliet facility. The report says the shipping issue is yet another setback in normalizing the U.S. supply chain. 

The news comes as the cost to ship a container via the ocean is also skyrocketing. According to Drewry Shipping Consultants, the average price worldwide to ship a 40-foot container overseas jumped 333% compared with the year prior. The price to ship that size of a container is $8,795.77 as of July 8, 2021. 

In addition to cost, timing is also an issue. The Sea-Intelligence says 39% of container ships around the world arrived on time at port in May. The statistic shows just how extreme the shipping delays are, which then extends into domestic distribution channels.

According to Pro Farmer, on the commodity side, USDA says there were shortages of available trucks from 18 of 23 specialty crop markets in the past week, with experts projecting little chance of relief this year.

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