Recalculating
Since 2021, LA/LB’s ports have experienced a record high level of congestion. Although they have gotten the situation somewhat under control, there is no letup in import volume.
Pulled in all directions
Naturally, freight forwarders have been shifting their shipments to East Coast ports.
Smart idea, right?
Except the Charleston and Norfolk ports now have a longer queue than the Los Angeles and Long Beach ports.
Factors including an increasing demand for foreign-made products, shortages of truckers and dockworkers, and pandemic-related disruptions affecting shipping lines are causing these delays.
Negotiations on track
Ahead of the contract negotiations for the West Coast dockworkers, some freight forwarders are choosing to have their vessels enter via the East Coast ports in case there is a repeat of the 9 month negotiations of 2014.
With so much at stake, it seems like all parties involved in the negotiations want to come to a resolution in a timely manner. Otherwise, miracles will need to happen.
Source: AJOT
Fuelling the US
Just as US airfare is returning back to pre-pandemic levels, East Coast fuel shortage will likely throw it all off balance yet again. The aviation fuel stockpiles are at their lowest point since 1996.
Given the ban on Russian fuel, US refineries have ramped up their production of diesel. This consequently meant cutting back in the production of jet fuel as the refining processes overlap.
So what happened next?
As you may have guessed, airfare prices soared which led refineries to increase their production of jet fuel.
The Potential Salvation
A Saudi Arabian cargo was diverted from Spain to New York Harbor. This should hopefully mitigate some of the problems.
Source: AJOT