Port of Vancouver congestion highlights new freight index forecast

ITS Logistics released its January forecast for the US Port/Rail Ramp Freight Index, showing relatively smooth operations across North American ports and rail ramps, with the exception of the Port of Vancouver.

“Vancouver is still clearing a three-week backlog of containers awaiting rail transit,” said Paul Brashier, vice-president of global supply chain for ITS Logistics, pointing to the Lunar New Year rush, a November port strike and a lack of rail equipment as contributing factors.

U.S. West Coast operations are expected to remain elevated this month, with concerns about potential transpacific inventory front-loading in addition to Western Canada port and rail issues, Brashier added.

The newly appointed Trump administration’s plans to impose a 25 per cent tariff increase on Canadian and Mexican imports as early as Feb. 1 could further impact operations, according to the report.

Citing the National Retail Federation, ITS said retailers are increasing imports to mitigate uncertainty. November container imports rose 14.7 per cent year-over-year to 2.17 million TEU, with December’s projected volume exceeding forecasts by 19 per cent at 2.24 million TEU.

Shippers may face a bottleneck at major entry ports, Brashier warned, while exports could suffer due to equipment imbalances and tariff repercussions.

ITS Logistics provides transportation, distribution and drayage services throughout North America, covering 22 coastal ports and 30 rail ramps.