While the ports of Los Angeles and Long Beach are waiting for record amounts of cargo volume and record number of container ships to be unloaded in September, the worst of the absence could end. However, the effects on the global supply chain are expected to last for several months.
According to Kip Lautit, executive director of the Southern California Marine Exchange, as of Sep0 September, container containers were in port, up from the previous day. A total of 62 container ships were anchored or compared to 64 and 28 berths the day before, less than 33.
“Fourteen container vessels are expected to arrive in the next three days, three less than the normal level of 1,” Lautit told The Epoch Times via email.
The twin ports saw about 412 ships arrive in September, 32 more than expected. As of September 2020, only 344 ships have arrived.
A record number of ships are waiting to unload their cargo in the Gulf of San Pedro, some of which are moving 20 miles from port.
Salvatore Marcogliano, an associate professor of history at Campbell University in North Carolina and an assistant professor at the U.S. Merchant Marine Academy, said that on average, ships waiting to be unloaded are nine to 12 days away from berths.
“When they clear this log jam, it will be after Christmas, after the New Year,” Marcogliano told The Epoch Times.
An exporter who loaded and shipped at least three ships per week from Los Angeles to Latin and Central America said he now has only three ships per week, a dramatic reduction for his busy company.
“We have a sudden 66 per cent capacity reduction, so now that we can’t ship, every ship is over-booked. It’s a snowball effect, “Malik told The Epoch Times.
The exporter said the trucking company he usually uses had to send their drivers home because his regular business was cut in a fraction.
He said exporters hoping to fill empty containers on ships abroad have canceled or stopped orders because they have no idea how long it will take for their goods to reach other countries on ships.
One of his clients had to pay a few weeks chassis fee and storage, which he said cost two containers more than sea freight to take them to their destination in Guatemala. The client had to hold his staff because they could not move the goods to their warehouse in Southern California.
“Pre-covid it was okay, even during covid we didn’t see this level of chaos,” he said.
The reason for the backlog
Marcogliano said there are several reasons for the current absence in Los Angeles and Long Beach ports.
First, the Kovid-1 pandemic epidemic disrupted the supply chain by shutting down factories in China. Other disasters, such as the Suez Canal being closed for six days and a powerful typhoon hit Asia, are also having an impact.
Since then, demand for the product has increased in the United States and elsewhere in the world as people are spending more time at home and ordering items online.
The nature of shipping has also changed in recent years, with ships being used in much larger containers. This reduces freight costs, making people accustomed to bringing goods from other parts of the world to their doorsteps on demand.
“Larger ships, when they can carry more cargo, the coastal infrastructure is not designed to carry it. And so you’re dumping a lot more cargo on the ground in these much bigger ships, “Mercogliano said.” Roads, railways, trucking can’t take it. “
Next, many shipping companies have merged with other large container companies to increase the volume of vehicles in Los Angeles and Long Beach.
“We have never seen this amount of ships in this port,” Marcogliano said. “For example there are only a lot of trained longshoremen, there are only a lot of trained crane operators to work on every available crane. Then you have cranes that are usually closed for maintenance, which also affects the situation.
Meanwhile, the ports of Los Angeles and Long Beach are not as automatic as other ports in the world.
“Cargo is being loaded at the East Asia terminal which is operating at 2/7, where the receiving ports are not at least towards our end. They are working in two shifts at LA and Long Beach, and there are hits and misses on weekends depending on the port and terminal, ”Marcogliano said.
In a September 1 release, the ports of Long Beach and Los Angeles announced that they would increase the hours that trucks could pick up and return containers to help reduce traffic congestion.
“We are among the historic landmarks in Cargo, and our terminal operators and other supply chain partners are going through everything they can,” Port of Long Beach Executive Director Mario Cordaro said in a Sept. 21 statement. “We welcome this pilot project … as a first step towards making Gates 2/7 operation, and we encourage our cargo owners and trucking partners to use this innovative program.”
About 50 percent of all cargo containers entering the United States each year pass through the port of San Pedro Bay, and about 0 percent of all container exports.
This News Originally From – The Epoch Times