port congestion los angeles
This unfortunately has a negative impact not only the affected ports, but also U.S. rail and intermodal trucking networks nationwide. To In addition to higher volumes, labor and chassis shortages have contributed to the ongoing congestion which is expected to last into at least December 2020. As a result, cargo heading into and out of the ports has slowed to a relative crawl, as the ports deal with record-breaking volume alongside a reduction in staff related to the COVID-19 pandemic. In addition, delayed vessel arrivals, as well as a chassis shortage in Southern California, which is expected to continue into 2021, have added to the logistical bottleneck. Weekly import volumes so far this year are “30 to 40 percent higher” than what the port was handling in 2019 and previous years, said Gene Seroka, executive director of the Port of Los Angeles. In this conversation with SupplyChainBrain Editor-in-Chief Bob Bowman, Jason Totah, president of Odyssey International Services, Inc., discusses alternatives to bringing cargo through overtaxed West Coast ports. Your email address will not be published. The Port of Los Angeles recently announced it had processed 883,625 TEU in September 2020, marking a 13.3 percent increase from 2019, and the busiest September in the port’s 114-year history. Increased demand is bottlenecking ports, gumming up supply chains and delaying product delivery for retailers. However, the increase in import volumes has not been matched by higher operating capacity in terms of equipment and space; the ports have also faced some labor shortages amid the COVID-19 pandemic. The volume of imports from Asia through the Northwest Seaport Alliance, which includes the ports of Seattle and Tacoma, has increased by almost 20 percent from September to October. Los Angeles/Long Beach Port Congestion The ports of Los Angeles/Long Beach are experiencing severe congestion and causing delays. The ports of Los Angeles and Long Beach have been overburdened with a deluge of container imports over the last few months. Adding to the Port of Los Angeles’ woes of congestion, Covid outbreaks and labour issues, the US gateway port has seen acute excess of boxes change to … A Peter T. Leach written Journal of Commerce (JOC) articleputs i… The Port has moved 7,297,430 TEUs since Jan. 1, a 4.7% uptick from the same 11-month period in 2019. About 85% of container vessels are currently going straight to anchorage where they wait an average of 8 days to unload, up from fewer than 3 days when the congestion began in November and zero days during normal times, Seroka said. Following the easing of lockdown restrictions in the U.S. in June, the ports have been operating at maximum capacity to process imports, with yard utilization averaging 80-85 percent. The new view from above reveals a vast armada of container ships scattered at anchor across California’s San Pedro Bay. By continuing to use It was hoped that this would ease following peak season, however there has been little reduction in demand for berths and many vessels are spending as much time at anchor outside the port as it takes to cross the Pacific Ocean. To remind, the twin ports of Los Angeles and Long Beach are the busiest U.S. gateway for ocean trade with China. But despite optimistic goals, challenging circumstances remain. The boss of the sorely congested port of Los Angeles has called for a breather, diverting ships to other destinations on the US west coast. Port Congestion Is … As a result, terminal operators have been forced to stack containers higher and wider in the container yards, which has delayed the release of import containers from the port complex for the final delivery leg to inland destinations. Required fields are marked *. The chronic port congestion in California has spread north. The ports of Los Angeles and Long Beach are currently experiencing severe congestion, with a heavy backup of containers waiting to unload import cargo from Asia. Newly released U.S. Coast Guard video offers visceral proof of just how extreme the congestion has become at the ports of Los Angeles and Long Beach. The Port of Los Angeles processed 980,729 20-foot-equivalent units in October, an 18% year-over-year increase from 770,289 TEUs. The Port of Los Angeles provides visibility through its daily signals. Concluding, throughout the pandemic, all cargo terminals at the Port of Los Angles have remained open and operational. The port is forecast to handle 730,000 twenty-foot equivalent units in February, up 34% from a year earlier. While the ports have reportedly taken some measures to combat the ongoing congestion, such as announcing financial incentives for truckers and carriers and opening near-dock storage yards, the logistical challenges are likely to continue into the month of December and possibly into 2021. The Los Angeles port is expecting to handle 155,000 inbound containers next week, 80% more compared to a year earlier, according to Bloomberg. Import volumes at the Port of Long Beach have experienced similar developments since the end of the initial lockdown phase, increasing by 14 percent year-over-year in September. By Robert Tuttle (Bloomberg) The Port of Los Angeles plans to divert cargo ships to other destinations because of pandemic-fueled congestion, according to the port’s executive director. The Port of Los Angeles developed The Signal, a daily digital tool powered by Port Optimizer, to indicate what’s en route. Truck and rail resources are “stretched thin.”. In addition, Hapag-Lloyd will implement an emergency surcharge of USD 180 for all containers requiring truck moves from or to the ports from December 12. Cargo-ship congestion at California ports and those located around the United States is at some of the highest levels in years due to supply-chain disruptions caused by the COVID-19 pandemic. Because of alliances loading bigger ships with larger and larger quantities of cargo, unloading cargo ships quickly and efficiently has become more of a challenge for the longshoremen working on the docks. For March, 775,000 TEUs are expected in the port, an increase of 72%. The latest information shows 8-10 vessels currently at anchor waiting berth space. The … Port of Los Angeles to divert ships due to pandemic-fueled congestion Following the COVID-19 outbreak, Port of Los Angeles decided to divert cargo ships to other destinations because of pandemic-fueled congestion, as Bloomberg news agency reported. The system uses manifest data from nine of the top 10 carriers calling in Los Angeles. But historic import volumes, COVID-19 safety concerns, equipment availability, and many other factors continue to bog down port operations. The Port of Los Angeles recently announced it had processed 883,625 TEU in September 2020, marking a 13.3 percent increase from 2019, and the busiest September in the port’s 114-year history. Southern Californian supply chains overwhelmed by a multitude of factors. But despite optimistic goals, challenging circumstances remain. The Port of Los Angeles is turning the page for a new year. Due to unprecedented pre-Lunar New Year inbound volumes, Los Angeles and Long Beach ports are experiencing extreme congestion. Source: LA Port Signal Dashboard. Port of Los Angeles diverting shipments to ease congestion February 23, 2021 It has been reported that the Port of Los Angeles (L.A.) is diverting all shipments to ease out congestion and keep the supply chain flowing, also stressing, these diversions are temporary. Ports face record-breaking import surge into December. The number of container ships waiting to enter the adjacent ports of Long Beach and Los Angeles remained elevated as goods crossing the Pacific … Receive the R360 Weekly Update Newsletter. The Signal data updated on Wednesday showed no letup in sight. Therefore, re-directing vessels to alternate ports will help the L.A. habor “dig out of this” backlog, he told Bloomberg. The chronic port congestion in California has spread north. Port Congestion Is … Loaded imports were up more than 23% YoY for The Port of Los Angeles in December and nearly 26% YoY at the Port of Long Beach. It also marked the port’s best month in its history. Los Angeles’s biggest port is more jam packed than its pre-pandemic nightclubs on a Saturday night. Figure 1: Weekly volumes at the Port of Los Angeles in TEU. Imports are expected to rise from 143,776 twenty-foot equivalent units (TEUs) this week to 157,763 TEUs next … Imports from Asia to the Los Angeles-Long Beach port complex reportedly increased by 22 percent in August and September compared to 2019 levels. Port Congestion – Los Angeles As we reported recently, Los Angeles port is still suffering from severe congestion. As Chief Logistics Officer for the City of Los Angeles, Port of Los Angeles Executive Director Gene Seroka spearheads Logistics Victory Los Angeles (LoVLA), which matches suppliers of PPE with local health care providers to help treat COVID-19 patients. A significant surge of import shipments at the Ports of Los Angeles and Long Beach has been causing severe congestion over the past two months, overwhelming supply chain operations in Southern California and causing considerable delays for container deliveries. Alphaliner reports this week that heavy port congestion in Los Angeles and Long Beach has prompted Maersk and MSC to decouple the transpacific strings of the two Europe – … In fact, as part of America’s supply chain, port operations, manufacturing and distribution are deemed essential and continue without interruption. Yesterday, Splash reported on a record-breaking 20 km queue, featuring 41 boxships waiting … The port is experiencing a “pandemic-driven buying surge unlike any we have seen.”...Gene Seroka added. The port of Long Beach is the second-busiest container seaport spanning 3,200 acres. The congestion at … Preventing human errors when changing DP control modes, Charterers tackle carbon with the Sea Cargo Charter, Poseidon Med II: LNG leads the path to a sustainable marine transportation, Increased enclosed space casualties call for more investment in training, Update March: Live map depicts spread of coronavirus, Singapore becomes the 1st country to ratify the Convention for marine aids to navigation, INTERCARGO: 53 bulk carrier incidents in first two months of 2021, Women in Shipping Watch: Expert thinking on making shipping more attractive to women, MCIB investigation: Drifting cargo ship runs aground after abandonment. Anchored down: The port gridlock has … PORT CONGESTION The ports of Los Angeles and Long Beach are currently experiencing severe congestion, which has been exasperated over the past two weeks. As 2021 arrived, many in the logistics industry hoped for a congestion reprieve. Port of Los Angeles takes steps to battle port congestion Port of Los Angeles on the US West Coast plans to divert container ships to other ports in an effort to get control of the congestion problems that currently cause bottlenecks for both containers and ships, report several media. ports could benefit from congestion at major U.S. West Coast ports as container cargo shippers look for alternative entry points to the North American market. Photo: Lucy Nicholson/Reuters/Ritzau Scanpix Several carriers including MSC and CMA CGM have already announced emergency intermodal surcharges in anticipation of a persistent increase in import volumes at both ports over the coming weeks. “You may have read about the port congestion in Los Angeles and Long Beach, where shipping container volume has doubled in the last 12 months,” Peloton CEO John Foley said in a … The Port of Los Angeles is turning the page for a new year. In the first week of the new year, more than 150,000 TEUs will enter the port. As 2021 arrived, many in the logistics industry hoped for a congestion reprieve. Each year, the Port provides up to $1 million in non-taxpayer funded grants to local nonprofits in support of community events, programs and projects. The port features cargo terminals including container, automobile, breakbulk, dry and liquid bulk, and warehouse facilities. The number of container ships waiting to offload at the neighboring ports of Long Beach and Los Angeles stayed elevated as dockworkers resumed working pre-pandemic hours to … The congestion at the ports has also disrupted trucking operations as turn times for trucks — the time to drop off and pick up a container within the terminal premises — have increased by 33 percent from June to September. The volume increase is creating a vicious cycle encompassing: 1. Cookies are used to But historic import volumes, COVID-19 safety concerns, equipment availability, and many other factors continue to bog down port operations. In recent months, these data indicate that congestion seems to be constantly pushing the flow of a large number of containers from one week to another. Both carriers will implement a surcharge of USD 350 per container on the transpacific trade lane that move out of the port complex to U.S. inland point shipments, with provision of carrier haulage, pre-carriage, or on-carriage door service. High import levels are driving the congestion. The Los Angeles port is expecting to handle 155,000 inbound containers next week, 80% more compared to a year earlier Visit Business Insider's homepage for more stories. As shown in Figure 1, import volumes were expected to further increase in Week 47 (Nov 16-Nov 21) at the Port of Los Angeles, with volumes reaching levels that could be up to 59 percent higher than in 2019. The congestion issues at the Southern California ports are also impacting the operations of other ports along the Pacific Coast. The combination of a record number of containers arriving at the Port of Los Angeles and Covid-19 is slowing down imports to the U.S. Furthermore, reduced storage capacity at warehouses is likely to lead to further challenges and extended container and chassis dwell times. It has been reported that the Port of Los Angeles (L.A.) is diverting all shipments to ease out congestion and keep the supply chain flowing, also stressing, these diversions are temporary. Namely, approximately 800 of the port’s 15,000 workers aren’t on the job because of Covid-19, leaving fewer staff to handle a surge in imports, Gene Seroka said at a press conference on Wednesday. We use cookies on our website. And the high volume levels are expected to continue, according to Port of Los Angeles' forecast, confirming Hapag-Lloyd's expectation of continued congestion through February. Supply chain managers depending on operations at the ports of Los Angeles and Long Beach should take note of the increased risk for disruption, activate contingency plans accordingly, and evaluate the benefits of re-routing shipment through other U.S. container gateways. Alphaliner reports this week that heavy port congestion in Los Angeles and Long Beach has prompted Maersk and MSC to decouple the transpacific strings of the two Europe – … Both ports are among the busiest container seaports in the United States, with the port of Los Angeles having ranked as the number one container port in the United States for the past 20 years, spanning over 7,500 acres of land and water. As yard utilization has averaged above 80 percent, the terminals’ capacity to both store and move containers to distribution centers and rail ramps has been severely disrupted. this site without changing your settings you consent to our use of cookies. The ports of Los Angeles and Long Beach are experiencing severe congestion that could pose major problems for shoe brands and retailers. B.C. In light of the challenging situation, shippers have increasingly turned to ports further north on the U.S. west coast. Empty containers volume was up 55%. Port of Los Angeles Executive Director Gene Seroka, in a virtual news conference on Wednesday, Feb. 17, said cargo numbers there were up by 3.6% in January compared to the same month a … Volume at Port of Los Angeles is expected to be up more than 80% YoY between Jan. 17 and Jan. 23, and up nearly 148% YoY between Jan. 24 and Jan. 30. Vessels generally have to wait two to three shifts after arrival before labor is … “You may have read about the port congestion in Los Angeles and Long Beach, where shipping container volume has doubled in the last 12 months,” Peloton CEO John Foley said in a … COMMENTdocument.getElementById("comment").setAttribute( "id", "a463fa4ed90699b1faba960b03e717ab" );document.getElementById("c789debfb2").setAttribute( "id", "comment" ); Your email address will not be published. The ports of Los Angeles and Long Beach are experiencing severe congestion that could pose major problems for shoe brands and retailers. improve the functionality and use of our internet site, as well as for analytic and advertising purposes. Both ports have direct rail connections to the Pacific Northwest and Midwest regions, and have experienced significantly less congestion levels in the past months. As the international shipping industry has trended toward bigger and bigger ships–yes, you can say it, megaships–carrier alliances have formed to fill those ships. By Robert Tuttle (Bloomberg) The Port of Los Angeles plans to divert cargo ships to other destinations because of pandemic-fueled congestion, according to the port’s executive director. As containers remain in the yard for longer, shippers have faced detention and demurrage surcharges by ocean carriers and marine terminals as well as higher spot rates and surcharges for intermodal shipments by rail carriers. To minimize risks, the Port continues to coordinate with federal, state and local partners, including emergency and public health agencies, for the latest directives and recommended guidelines. learn more. Ports | 19/02/21 The port serves as a hub for U.S.-Asia trade, handling trade valued at USD 170 billion annually. The Port of L.A. and the Port of Oakland, which is impacted by congestion in L.A., are discussing measures on how to minimise supply chain disruptions. The Port of Los Angeles has opened the application process for its annual Community Investment Grant Program. Fossey noted that major Southern Californian ports including Long Beach and Los Angeles are under “unexpected pace and sustained demand” due to the e-commerce boom from the COVID-19 pandemic, as well as disruption to shipping lines andnational or regionalised lockdowns … learn more about cookies, how we use them and how to change your cookie settings find out more here. Thousands of import containers are being … Port delays The congestion and added vessel calls are creating labor shortage at the West Coast terminals. The surge in imports through Long Beach Port (Los Angeles) is stretching capacity throughout the Southern California. The number of trucks needing over two hours to complete the turn has also steadily increased, impacting the overall productivity at the ports. How long the congestion continues will depend largely on import volumes between now and the beginning of the peak season in August.