Container Congestion
The Los Angeles - Long Beach port has seen major backlogs since late February 2022.
Despite briefly reducing the number from 109 to 50 container ships waiting in to unload, the number will likely increase dramatically as the next round of shipments arrive over the next 2-3 weeks.
Over the Limit
It’s not only a problem of the port not being able to accommodate all the shipments, in-land infrastructures are bottlenecked too. So once the containers are unloaded to the terminals, they’ve got nowhere to go.
Although everyone is working round the clock to alleviate the problem, it does not look like it will be resolved until after the peak shipping season of 2022.
At the Core
The supply chain disruption really brought to light just how outdated the infrastructure is. Hopefully, the billions of dollars being poured into improving every point of the framework from railroads to ports to warehouses will help in the long-run.
Source: JOC
Economy put on hold again?
The already broken supply chain system is getting thrown another hurdle.
We’ve seen the repercussions of shutting down an economy yet key port cities in China like Shenzhen and Shanghai have gone into yet another lockdown because of an influx in COVID-19 cases.
More Delays
Shipments are already being canceled or diverted to alternative ports. Truckers are hesitant to enter the restricted areas because of required negative COVID tests.
Last month’s Lunar New Year celebrations have already put a hold on shipments, how will both disruptions impact shipping delays?
Only time will tell but the metrics aren’t looking good.
Source: JOC