Tuesday, September 28, 2021

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    U.S. ports see Logjams shipments likely to expand until 2022

    Some of the busiest U.S. port leaders scream at maritime gateways as the crushing of goods from manufacturers and retailers trying to replenish depleted inventories has pushed away the usual seasonal drop in shipments. We expect the congestion to continue until next year.

    The port has already been overwhelmed by the record number of containers arriving on the U.S. coast during the peak season of this year’s shipments, waiting for a birth space at a gateway in Southern California as log jams spread across nationwide warehouses and distribution networks. The number of ships is increasing.

    Port leaders who have spoken to shipping companies and their freight customers, such as Mario Cordero, Secretary-General of the Port of Long Beach, California, say the volume of containers is declining. China is usually closed and is unlikely to offer much relief.

    “There is no substantial relief from the congestion experienced by major container ports,” said Cordero. “Many people believe it will last until the summer of 2022.”

    Glyph Lynch, Secretary-General of the Georgia Port Authority, which operates one of the country’s largest sea gateways at the Port of Savannah, said:

    According to a Global Port Tracker report produced by the National Retail Federation’s Hackett Associates, major US ports were projected to process the equivalent of approximately 2.37 million imported containers in August. This number is the highest in the record up to 2002, and the total annual inbound volume of the NRF project reaches 25.9 million containers, measured in units equivalent to 20 feet. It will break the record of 22 million boxes in 2020.

    Ports have emerged as one of the many bottlenecks in the world’s supply chain as ships fill boxes carrying electronics, furniture, holiday decorations and other commodities.

    Hundreds of thousands of containers are loaded onto container ships waiting to berth, or from terminals waiting to be moved to inland terminals by truck or rail. Warehouse and distribution center..When the boxes move, they are often crowded and growl Freight railway yard A full-capacity warehouse.

    Bob Biesterfield, CEO

    CH Robinson Worldwide Ltd

    North America’s largest freight broker said the shortage of truck drivers and warehousemen exacerbated shipping delays, as the need to restock is higher than ever. “I don’t think this will be fixed in the next four to five months to coincide with the Chinese New Year,” he said.

    Congestion Global shortage For the spiral cost of shipping containers and sea freight. The log jam causes the Biden administration to appoint a port envoy last month to work on ways to improve cargo movements in response to complaints from U.S. companies facing inventory shortages, shipping delays and rising costs. I was prompted.

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    Congestion is the worst in the adjacent ports of Los Angeles and Long Beach, accounting for more than one-third of US maritime imports. Over 40 ships According to Southern California’s marine exchange, a record of the pandemic era, it has been waiting at anchors off the coast for the past few weeks. Before the pandemic, one anchored ship was unusual.

    Gene Seroka, Secretary-General of the Port of Los Angeles, said that continued peak holiday seasons could exacerbate congestion by the sea. The port broke the container handling record for 13 consecutive months. Seloka hopes the terminal will process 35% more inbound containers in the week starting September 5th and 80% more inbound containers the following week compared to the same period last year. I said there is.

    The surge is being driven by Americans Shift their spending From services such as restaurants and vacations to home renovations, office equipment and other consumer goods. Port leaders say importers are hoarding additional inventories after just-in-time supply chain shortcomings became apparent in the early weeks of the pandemic.

    Sam Ruda, director of the Port Authority of New York and New Jersey, said log jams can only break when the Covid-19 pandemic subsides. “That’s what tells us the duration of what we see on earth today,” he said.

    Logistics report details

    Write to Paul burger Paul.Berger@wsj.com

    Copyright © 2021 DowJones & Company, Inc. all rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

    U.S. ports see Logjams shipments likely to expand until 2022

    Source link U.S. ports see Logjams shipments likely to expand until 2022

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