15 September 2022

On the ocean

We've been managing capacity as best as possible given unprecedented circumstances to support our customers and keep their cargo moving. We encourage you to continue to communicate with our dedicated sales organization and provide accurate forecasts. Accurate forecasts will support better deployment of our capacity across our trades and in turn better support your business. In addition, given port congestion and labor constraints at some of our ports in North America, please consider delivering your cargo following cut off guidelines (taking into account washing and fumigation timelines). As a result, we kindly ask you to consider delivery of your cargo as close as possible to receiving cut off (vessel ETA). This will allow us to better utilize space at our ports and terminals as well as allow for more efficient vessel loading and unloading operations. Early delivery of cargo is causing high inventory levels and it is impacting our efficiency and flexibility to operate our vessels.

In ports and terminals

Trucking capacity and labor shortages continue to disrupt port operations, as cargo is not able to be delivered and picked up as efficiently. Vessel delays also make it difficult to arrange for cargo pick ups and drop offs. In addition, high inventory levels remain at some of the US West Coast ports, where pick up of cargo needs to be expedited.

Callao, Peru - The port is still facing congestion as the terminal continues to work at maximum capacity. We continue to work closely with the terminal as we try to secure a berthing window. Further delays are expected through August.

San Antonio, Chile - With reductions in vessel waiting time at Port of San Antonio, due to most carriers diverting service to alternative ports, we will be decreasing the San Antonio schedule disruption surcharge from $15/CBM to $6/CBM.

At our processing centres

Vehicle processing:
Our port processing centres are open and operational. As production continues to be disrupted, we continue to be flexible in the services we offer, how we organize our sites, as well as seeking additional storage options where necessary.

Mexico: Mexico: All facilities remain open and operational; safety measures continue to be in place in all of them to ensure the health of our employees. We are working closely with plant production and vehicle distribution areas in every facility across the country to ensure and adjust capacity/resources as they face intermittent shutdowns due lack of components to assemble vehicles.

Canada: In Annacis, inbound volumes continue to be lower than typical seasonal volumes. Currently, due to the lower volumes, there are not any operational or vessel constraints affecting throughput or capacity. With the lower volumes this has had minimal impact on the overall service. We continue to anticipate an increase in volume and are preparing our staffing for a return to those levels.

Equipment processing:
Operations: Our equipment processing centres in the U.S. and Panama are open and operational, though with reduced staff in some locations to reflect demand.

Capacity: We continue to see strong volumes at both our on-port and off-port EPC sites and encourage our customers to both look at their upcoming forecasts and any planned changes to assist planning for our operations teams.

Inland distribution

Keen Transport’s trucks are operational and deliver units to and from ports, plants and dealerships. The regional maintenance facilities are open to keep the fleet on the road, as well as our permitting team to secure necessary approvals.

We are thankful for the continued support our drivers have received throughout the United States.