Shipping and Logistics
Port Congestion Further Hampering Supply-Chains
Written by David Schollaert
September 14, 2021
Container ships are stacking up all around the U.S. as the ports are overwhelmed by surging imports of all types of goods. Delays at the ports may further extend the already-long lead times for the growing orders of foreign steel.
Imports of all types of products from Asia, for example, increased 32.4% in the first seven months of this year versus the same period in 2020, according to IHS Markit’s PIERS data provider. The double-digit increase is stressing ports already contending with logistics delays and labor shortages, causing vessels to bunch up in the early days of peak shipping season.
According to the Marine Exchange of Southern California, there is now a logjam of more than 50 vessels in Los Angeles-Long Beach awaiting space, with more vessels scheduled to arrive daily. Similar bottlenecks are reported at ports in New York-New Jersey, Seattle, Savannah and others.
Underscoring the severity of the problem, the Port of Philadelphia’s main container terminal took a three-day stoppage to all vessel operations earlier this month to clear out container backlogs. Operator Greenwich Terminals said in a notice that they have not taken lightly the decision to delay vessels. However, they said the best way they can help the trade community is to focus their efforts turning containers and making space for incoming ships. Philadelphia’s total imports rose 23% year over year during the first seven months of 2021.
According to a report from JOC.com, the next three months will be difficult for the ports and their severely taxed inland supply chains. “Within the coming months, carriers are aiming at what can at best be described as a capacity explosion on the trans-Pacific trade,” said Alan Murphy, CEO of Sea-Intelligence Maritime Analysis. “Good for a booming market, but [it] could lead to even worse congestion.”
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Shipping and Logistics
Reibus: Flatbed, dry van rates ticked up post-hurricanes
After closing the third quarter -3.84% on a y/y basis, our first look at fourth-quarter flatbed spot rates puts us virtually flat y/y, coming in at -0.68%.
Leibowitz: Thorny issues remain as ILA-USMX talks kicked into 2025
On Thursday, the International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX), representing carriers and port operators on the East and Gulf Coasts, announced a three-and-a-half-month extension of the recently expired collective bargaining agreement. The extension kicks the can down the road until Jan. 15, 2025, after the 2024 election and the certification of the results on Jan. 6.
Ports strike over as longshoremen reach tentative pact with employers
The International Longshoreman's Association (ILA) union and the United States Maritime Alliance (USMX) reached a tentative agreement on wages on Thursday evening. The move ends a strike at East Coast and Gulf Coast ports that began on Tuesday and that had threatened significant supply-chain disruptions.
ILA rejects 50% raise, strikes ports on East Coast, Gulf Coast
The International Longshoremen’s Association (ILA) launched a strike just after midnight on Tuesday at East Coast and Gulf Coast ports. The work stoppage spans from New England to New Orleans. It came after a last-ditch offer by the United States Maritime Alliance (USMX), which represents maritime employers, failed to meet union demands.
Calls for talks as coastwide labor strike could hit supply chains on Tuesday
Unless a last-minute deal is struck by midnight on Monday, a massive work stoppage will hit ports up and down the East and Gulf Coasts on Tuesday and cause widespread supply chain disruption. Master contract negotiations remain stalled between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX). The employer group took […]