The supply chain is interconnected, with lower import volumes giving relief to intermodal terminals and railheads. However, higher fees and regulatory changes are shifting pressure to other parts of the supply chain, impacting truckers as import volumes continue to decline. This downward trend is squeezing the soft drayage market, potentially causing issues for shippers.

As the international container market weakens, ports are enforcing tighter assessment of accessorial fees, while evolving regulations around commercial driver licenses are driving lower-cost capacity out of the market. This compounds the challenges faced by the drayage market, leading to potential financial insolvency for carriers and impacting terminal and port operations.

Federal and state crackdowns on non-domiciled commercial driver licenses and English-language requirements are causing bankruptcies among carriers, ultimately reducing overall capacity in a negative rate environment. These regulatory pressures will remove capacity from the ecosystem and disrupt the market in the near term, potentially driving carriers out of business in the long term.

The National Retail Federation projects a decline in U.S. September import volume, attributing it to tariffs and first-half frontloading. Ocean carriers are strictly enforcing accessorial schedules to maintain profitability in response to declining per-container revenue, leading to a renewed focus on supply chain efficiency and potential penalties for inefficiencies.

Accessorial charges cover various fees outside standard pickup, transport, and delivery, such as detention, demurrage, customs inspections, and chassis usage. Shippers are advised to review their supply chains for inefficiencies that could be penalized and ensure clarity in dispute processes and documentation requirements, particularly for rail movements of ocean containers.

Read more at Yahoo Finance: Trucks to feel pressure from weaker port, rail: ITS