Container and Cargo Shipping delays at the Los Angeles-Long Beach Port Explained

Container and Carog Shipping Delays Long Beach Port

Source: www.joc.com

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:

Bill Mongelluzzo recently explained the situation in detail at the 2014 Inland Distribution Conference. To quickly recap, the issues trace back to the harsh east coast winter of 2013 that set in motion a chain of events throughout the supply line. Train and rail cars began missing their scheduled times and containers were left on the docks.

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.

Long Beach Port CongestionBack at the ports, vessels were coming in and terminal operators could only operate 2 cranes at a time and the rest of the resources were sent to the congested marine terminal, ultimately causing vessels to back up in the harbor as recently reported by Amoy.

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.

Resolution:
Bill Mongelluzzo went on to explain that cargo volume should begin to tail off in the middle of November and should pick up at the start of 2015. That gives a brief window of 5-6 weeks to provide some relief with added traffic and cargo volume from entering the ports.

 

Amoy International’s Plans:

In addition to paying close attention to the developments at the Los Angeles & Long Beach Ports, the two busiest ports in the nation, Amoy will continue to work with all distributors to ensure swift movement of cargo domestically and internationally. A bit of good news recently came for US footwear importers. Read more here

 

Please contact Amoy International by phone at (626) 855-3077 or through our Contact Us page!