US Ocean Insight: Port Congestion

The port of LA currently has 30+ vessels waiting for berth positions for over a week with cargo stuck in limbo as ships wait for the backlog to be cleared.

The backups are the result of a big restocking effort that is underway while dockside terminals cope with a coronavirus outbreak that has slowed freight handling. The congestion issues have begun to spread along other ports across the West Coast.

As a result, we’re seeing the following impact on US supply chains:

• Vessel schedules fluctuating significantly and advanced vessel cut-off without prior notice, which can result in containers incurring quay rent if cut off moved and already returned to port
• Terminals requesting dual transactions only, meaning to bring a container (either returning an empty or dropping an export load) and picking up a container (either an import or an empty for export load) in one trip, under one terminal booking slot. As a result, truckers are now having to wait to have matching loads, from the same port terminal in order to make a booking to collect/deliver. Whilst the trucker is waiting, costs can be incurred for chassis rental and container rent which is directly affecting your cost per shipment.
• Shortage of drivers to cover volume
• Additional charges being incurred on most containers moving in/out of the port
• Extensive lines at terminals on appointment only with limited time windows to deliver containers for cut-off
• Rail delays
• Vessels omitting ports