Recent attacks by Yemen-based Houthi militia on commercial ships transiting the Red Sea, along with continued conflict in the Middle East, have triggered significant disruptions in global shipping routes and costs. As more US-bound imports are redirected to the West Coast, supply chain analysts fear a new port congestion crisis in the Western US. Fortunately, shippers who trust key elements of their supply chains to Salson Logistics, are able to lean on Salson’s assets, resources and equipment at nearly all major US ports to divert shipments and perform drayage, transload and OTR trucking services.
What’s Happening in the Red Sea?
The Red Sea shipping crisis has indeed led to shifts in how imports are being routed into the United States, with significant impacts on both East and West Coast ports. The disruptions have caused a surge in shipping rates globally, including for cargo bound for the U.S. West Coast. Ports like Los Angeles and Long Beach have become increasingly attractive options for shippers looking to avoid the longer and more expensive routes necessitated by the crisis.
Rates for shipments from Asia to North America's East Coast climbed significantly, but the West Coast prices also jumped, reflecting a broader impact across U.S. ports due to expected cargo diversions aimed at avoiding Red Sea-related issues. Specifically, up to 30% of cargo arriving at the U.S. East Coast typically travels through the Suez Canal, and logistics experts anticipated some of these imports would be diverted to the U.S. West Coast, which offers a more direct route from Asia across the Pacific Ocean.
This situation is compounded by drought restrictions in the Panama Canal, which had already forced Asian cargo bound for East and Gulf Coast ports to switch from the Panama to the Suez Canal, now being rerouted around the Cape of Good Hope or directly to the West Coast. The much shorter route from Asia to the West Coast, compared to the longer voyages required to avoid the Red Sea and Suez Canal disruptions, has made the West Coast a more attractive option for some shippers.
The overall effect of the Red Sea crisis on global shipping, including the redirection of some cargo to the U.S. West Coast, underscores the interconnectedness of international trade routes and the wide-ranging impact of geopolitical and environmental factors on maritime logistics. As the crisis continues, the shipping industry and importers alike are adjusting their strategies to mitigate the increased costs and delays associated with these disruptions.
How Salson Logistics Can Help
At Salson, we can’t control the situation in the Middle East, but we can help you respond to it quickly and effectively. We’re working with our customers to proactively face this situation head on instead of waiting for it to resolve. This includes diverting shipments to Ports on the East Coast and then moving containers to points West by truck or by rail. We can do this because our asset-based capabilities at major US ports on every coast enable us to get your product to stores quickly.
Salson Logistics is an asset-based 3PL provider that offers nationwide logistics services:
- Container drayage at most major US ports on the East, West, and Gulf Coasts
- Transloading services to help you get products to market as fast as possible
- Dedicated Fleet services and Final Mile Delivery which, thanks experienced SalSon drivers and superb equipment, maintain a consistent 99%+ on-time delivery rate
- Pool Distribution with fast, efficient processing with experienced drivers to deliver your freight within 24 hours after receipt – sometimes the same day
Turn to Salson to meet this and other logistics challenges head on. Contact us today to speak with one of our shipping experts.
