U.S. port congestion expected to continue until mid-2022

Port congestion has become one of the major factors affecting the global supply chain . Ships at ports are filled with containers filled with various products, and these containers are stuck on ships waiting for berths or piled up at docks waiting for transportation to transport them to inland terminals, warehouses and distribution centers . These goods are stranded at ports for longer and longer periods of time.

With the holiday shopping season just around the corner, retailers are facing an all-time high in demand to restock their inventory . A shortage of truck drivers and warehouse workers is also exacerbating congestion , and port congestion is not expected to ease in the coming months.

Many professionals believe that congestion at US ports is expected to continue until mid-2022.

Mario Cordero, executive director of the Port of Long Beach, California, said : " The slowdown in container traffic usually occurs in February each year, when most factories in China close for the Lunar New Year . There is no substantial relief for the congestion at the container ports, and we believe that congestion will continue until the summer of 2022."

According to Hackett Associates' Global Port Tracker report , major U.S. ports have handled about 2.37 million import containers in August this year . This number is the most in a month since records began in 2002. In addition, NRF expects the total inbound volume in the United States this year to reach 25.9 million containers, which will break last year's record of 22 million containers.

The congestion is most severe at the Port of Los Angeles and the Port of Long Beach , which account for more than a third of all U.S. seaborne imports. Gene Seroka, executive director of the Port of Los Angeles, said the Port of Los Angeles has broken container loading and unloading records for 13 consecutive months . According to data from the Southern California Marine Exchange, more than 40 ships have been anchored off the coast every day in recent weeks waiting for berths .

The congestion has led to a worldwide shortage of containers and higher shipping costs. In response, the U.S. government appointed a ports envoy last month to address cargo transportation issues facing U.S. companies, including inventory shortages, shipping delays and rising costs.

With the arrival of the holiday stocking season, global port congestion may be further aggravated, which is also a major problem for cross-border sellers in preparing for the holiday shopping season. In this case, sellers should prepare early and manage inventory well to avoid shortages during the peak season.

logistics

Port congestion

Supply Chain