David Rainwater: Hey everyone, David Rainwater and Theresa Neff here with GSC logistics Delivering Certainty. Theresa, How are you today?
Theresa Neff: I’m great, David, Thank you for asking.
David Rainwater: It’s really the last time we were together talking about this never ending peak season, we said that we would get back to everyone in 30 days to give an update on where we are. Well, here we are and I was wondering what is going on? What news do you have for us now?
Theresa Neff: Yeah. David, when we talked last, you know, it looks like Covid restrictions and Covid itself was kind of starting to move along and go away, but, here we have the delta variant and that’s going to have an impact as we saw it already had a huge, huge impact on the stock market yesterday. So, we will see how that plays out in peak season on the supply chain. In addition, U.P. has announced last week that starting Sunday, they are suspending service from the West Coast ports into Chicago due to lack of chassis ease and drayage. They have a lot of containers just stuck in that area that they need to get back out. This is going to cause over 40,000 containers to be sitting at West Coast ports over the next week. This isn’t the only action that there could be further actions like this to help ease up congestion over the next month or so. Couple that with last minute changes by ocean carriers on where dredge containers get delivered. This forces drivers to make extra trips, whereas usually, they can make three or four turns a day, increasing that distance on where they need to deliver by even just 40 miles can reduce the number of turns they can make in a day almost in half. And that leads to further congestion and efficiency challenges.
David Rainwater: Well, Theresa I thought I was going to come to you and you have this great news for us, this, this great update. But it seems like the hits are just continuing to come. You know, I don’t know if I can take another 30 days of this, this great news. So bottom line, let’s maybe go back and review and after two weeks we can come back and give an update of where we are in the market and see if anything has positively changed for us here in this never ending big season.
Theresa Neff: That sounds good. David, I look forward to it.
David Rainwater: Take care everyone.