Container and Cargo Shipping: Explaining the Gridlock and Looking Forward
Amoy International has been staying up to date with the latest Los Angeles and Long Beach Port gridlock issues. There have been a number of complications that have led to the current situation at the ports. Luckily, there is some potential relief from the gridlock on the horizon. First, let’s explain how the container and cargo shipping delays at the ports occurred:
The shipping lines providing the chassis were sold to equipment leasing companies and were ill-prepared to make the transition and as a result, chassis were scattered. Truckers then had to go pick up a container as well as chassis and limited their total capacity as a result. But not only is there a chassis shortage but a shortage of drivers to move containers to distribution centers (a result of poor wages and working conditions).
Unfortunately, ILWU negotiations fell through and the deadline was missed.
Another unfortunate result of this gridlock is that recently, truckers have been imposing congestion surcharges of $50 to $100 an hour. A fee that retailers are having to pay in order to get their containers on time. The timing is unfortunate with retailers scrambling to get a last minute push for all of their holiday goods and products into their warehouses.
Amoy International’s Plans: