In this episode of Freight Nation: A Trucking Podcast, host Brent Hutto is joined by Christopher Chase, Assistant Director of Marketing for the Port of Los Angeles. 

Christopher is the Assistant Director of Marketing at the Port of Los Angeles, where he focuses on the container and cruise industries, supply chain enhancement and optimization, and maintaining relationships with beneficial cargo owners and railroads.

[19:19] The Red Sea crisis is a part of the broader conflicts in the Middle East, specifically the October attacks and military actions taking place in the Gaza-Israel conflict. The leadership in Yemen has taken the position that anything heading in that direction could be supporting Israel. It is thus using shore-to-ship missiles to shoot at various ships going by. Therefore, most shipping lines have moved their vessels elsewhere because of the risk profile, including the major container lines. Shipping companies have had to make these decisions based on their types of cargo, whether they can afford to be late on delivery cycles, where they are sourcing goods, and the increases in freight rates.

[28:15] With the ongoing conflicts affecting shipping lines, there have been concerns about whether it will have a knock-on effect on domestic truck transportation. While this has not been apparent, some people see it as inevitable because everything in the global market is connected. The question then leads to, when it will stop. From Christopher’s perspective, pricing seems to have plateaued, but it’s up to insurance carriers on whether ships can return to the Red Sea. However, in the shipping world, if there’s a risk, you have to prepare for it, and if there's a way to get around it, then you should, which is what we’re seeing.  

[31:31] Christopher emphasizes the need to focus on safety first to mitigate the challenges that these geopolitical situations and other factors, such as the Panama Canal congestion, are having on the freight industry. After that, you can consider the main goal and the needs of your customer base. It’s all a calculation of speed, distance, risk, and customer needs to find the best solution to the problem.  

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