Cargo moving out of U.S. West Coast ports could face a chassis shortage inland
United States
U.S. West Coast
Record volumes drive service prioritisation
Despite the Port of Los Angeles experiencing the highest June and July volumes in its more than 100-year history, inland drayage rates remain below pre-pandemic levels. This is creating unsustainable margin pressure on carriers while providing temporary cost relief for shippers.
The volume surge stemmed from importers rushing cargo ahead of higher U.S. reciprocal tariffs, but this premium freight commanded higher rates for the expedited handling. Standard freight has been experiencing longer wait times as carriers prioritised higher-paying, time-sensitive deliveries over routine deliveries.
In other words, extremely competitive rates may come with service tradeoffs. Carriers under significant cost pressure may struggle to maintain consistent service levels during peak periods or operational disruptions. Understanding these market dynamics makes informed decisions easier when it comes to balancing cost and service requirements for different types of deliveries.
Container dwell times down, chassis supply under pressure
Ports are currently demonstrating strong operational efficiency and successfully managing increased throughput, as evidenced by container dwell times well below historical averages and rapid truck turn times. Chassis availability remains strong at port terminals, though tightening may occur for cargo moving inland that requires rail connections.
To address potential inland shortages, major chassis providers proactively repositioned equipment to key inland hubs in June and July, though this preventative measure may not fully offset continued high demand.
Ports push ahead on clean trucking infrastructure
The Northwest Seaport Alliance has announced a programme to transition to zero emission drayage trucks by 2050. Washington State grants will bring 19 zero-emission trucks to the region and construction on a major charging facility is expected to begin this fall.
The Port of Newark has opened a new electric truck charging station, showing clean trucking infrastructure expanding beyond West Coast markets.
U.S. Gulf Coast
Export container shortage intensifies
Gulf Coast drayage faces a severe container shortage for export cargo. A decline in imports from Asia means fewer containers arrive at Gulf Coast ports that can be cleaned and repositioned for exports. Agricultural and manufacturing exporters that depend on predictable container availability for production planning are now competing for limited equipment.
The traditional cycle works like this:
- Import containers arrive
- Containers get unloaded
- Containers are quickly repositioned for exports
Now that cycle is broken because export demand remains strong, but fewer import containers are arriving. This creates acute shortages at Gulf Coast ports and inland rail terminals.
The shortage is compounded by ocean carriers prioritising their limited containers for profitable Asia-bound rotations rather than accommodating U.S. export demand. Extended detention periods and increased repositioning costs are becoming standard challenges for exporters throughout the region.
Port of Houston’s structural imbalance
Houston's export-orientated market makes the chassis shortage worse. Export demand traditionally exceeds import levels, so the port already has a structural imbalance. High petrochemical resin production in the region generates strong export demand for containers, but limited vessel capacity to European destinations means containers are tied up longer in the supply chain, reducing their availability for other exporters.
These imbalances will persist until import volumes recover and vessel schedules normalise following U.S. tariff policy changes or until carriers invest in additional equipment positioning. Neither scenario appears likely in the near term.
U.S. East Coast
Port congestion spreads to regional rail network
East Coast operations face congestion extending well beyond marine terminals. Rail service into the New York area is delayed up to a week, creating cascading effects for cargo moving throughout the region. These delays are expected to persist through August as terminal throughput remains constrained.
The practical impact is that port congestion becomes a broader logistics challenge affecting the entire eastern corridor. Intermodal services face particular constraints, because chassis shortages are compounding marine terminal congestion, potentially adding three to five days to normal transit times.
Shippers should factor substantial buffer time into delivery schedules and consider alternative East Coast gateways, including Norfolk, Savannah or Charleston to avoid delays. Advanced booking becomes critical for service reliability during peak periods, with lead time of two to three weeks recommended.
Canada
Rail labour agreements eliminate strike risks through 2027
Canada’s two major railways have secured binding labour agreements that eliminate strike risks for the next several years. Canadian Pacific Kansas City (CPKC) received an arbitrator’s decision establishing new four-year agreements with the Teamsters Canada Rail Conference (TCRC) running through 31 December 2027, including 3% annual wage increases with no ratification required. Canadian National Railway (CN) and TCRC reached a three-year contract through 31 December 2026.
Rail service disruptions from labour disputes are no longer a concern through 2026-2027. This provides unprecedented planning certainty for cargo moving through Canadian gateways and makes Canadian routes more attractive alternatives to U.S. gateways facing operational challenges.
Montreal strike threat resolved
The Port of Montreal labour dispute has been resolved through binding arbitration. After mediation between Montreal dockworkers and the Maritime Employers Association (MEA) failed to reach agreement, both parties entered arbitration, which legally prevents any work stoppages including strikes.
Montreal operations are expected to continue without interruption, providing reliable access to Canada’s second-largest container port. Shippers can confidently book Montreal cargo without strike risk concerns that have affected the port in previous years.
Mexico
Manzanillo congestion forces service changes
The Port of Manzanillo continues experiencing severe operational challenges despite extensive intervention efforts. Extended customs hours and additional staffing have failed to resolve persistent delays.
The vessel berthing wait time is now four to five days and further increases are expected. Slow import clearance and yard congestion prevent efficient movement of empty containers, creating equipment positioning challenges.
Service diversions may become more widespread if Manzanillo conditions don’t improve, potentially reshaping regional drayage patterns and equipment positioning for the remainder of 2025.
Hurricane season heightens risks
Hurricane season in Mexico (June through November) adds weather-related risks to existing operational challenges. Mediterranean Delivery Company (MSC) has already modified schedules to use Lázaro Cárdenas instead of Manzanillo to avoid congestion, demonstrating how persistent problems can force more permanent service changes.
Shippers should build additional lead time into planned Mexico deliveries and consider developing comprehensive alternative port strategies. The combination of infrastructure limitations, operational challenges and weather risks requires enhanced contingency planning throughout the hurricane season.