By  Arthur Chen   Photo：Derick Daily，Link：Unsplash

The vessels long queue up in LA/Long Beach ports in south CA for berthing to load/unload containers has been causing huge delay of those containers convert and delivery in the US including further on-forwarding to inner cities in mid-west US.  It also keep on impacting the supply chain lag and sufficient stocks in retailing warehouses for over 3 months. 

The accumulated insufficient capacity in ocean freight movements because of ports congestion in every main ports, especially LA/Long Beach ports which is the main gateway for inland IPI transiting those containers on railway to inner cities in the US. The queue up days for berthing already reached 5-7 days plus the containers piled up in port ramps in general 5 more days before moving to next sections, some ship lines have canceled the calling to LA/Long Beach and heading to Oakland port, San Francisco, CA. This main helps to less congestion a bit to LA/Long Beach, however, it also going to increase the volume in Oakland port drastically. And it is also a severe challenge of the transit containers on railway to inner cities too. 

In fact, the congestion in whole US ports have been spreading from South west coast up to Northwest, Oakland ports, Tacoma, Seattle even Vancouver, Canada, Price Rupper port Canada etc. Never to say the Gulf bay area, Houston port, influenced by Panama cannel capacity has been few months already in which most shipping liners have turned down receiving bookings to Houston. The transpacific ocean container movement from Asia to USA is still in messy and of course, the consequence obviously everyone know of the sky-high price but still short of equipment and space. The dawn has not yet coming.

The Chinese New Year long holiday in China started from Feb 11th through 17th but the shortage of drivers in trucks has already raised up two weeks ahead. Most of pick up trucks drivers are from inner city residences who either forced to leave those main ports such as Shanghai, Shenzhen, Tianjin, Qingdao, Ningbo, Xiamen etc. because of the new wave of COVID-19 outbreak in China by local governments’ instruction or spontaneous leave for hometown for Chinese long holiday, in the way to avoid the potential chance in affected by virus. To get a truck, trailer available is as same as tough to get shipping line released space and equipment before Chinese New Year, ever double pay to pick up fee. These compound hard situations have never pouring on logistic transportation business before.  Both China and USA sides make ocean freight in chaos, ever.

The 2021 ocean contracts in USA trade shall be signed up in March for BCO (direct clients with shipping lines) & in April for NVO (freight forwarders with shipping lines). Based on current chaos and the possible economic return normal after vaccine injected. The dawn seems to closed but not sure when will be. It will be a interesting issue in after following few weeks. Let’s see how the ocean contracts wrestling in among all weeks later.

Read more  : Chinese Truck drivers return to their hometowns earlier for Chinese New Year