Maersk Essen Diverted to Mexico Due to California Container Port Congestion

Yesterday, we posted about the Maersk Essen that recently lost 750 containers over the side in a  storm in the North Pacific. An unknown number of containers still aboard the ship are believed to have been damaged during the storm. The ship was originally scheduled to dock in Los Angeles but has now been diverted to Port of Lázaro Cárdenas, where it is expected to spend some time alongside taking off damaged boxes on deck. The ship will also be surveyed for storm damage. 

The ship was diverted due to extraordinary container port congestion in Southern California. The Port of Los Angeles, the busiest container port in the Western Hemisphere, is absolutely jammed with container ships. Recently, there were over 30 container ships at anchor in San Pedro Bay off Los Angeles and Long Beach waiting for berths. Container loading and discharge operations, designed for the fast turn-around of the ships in port, have slowed dramatically. 

The ports have been doubly hit by the pandemic. There has been an unexpected rise in trade with China. The New York Times reports that the surge in imports is another byproduct of the coronavirus, with Americans channeling money they might have spent on vacations, movies, and restaurant dining to household items like new lighting for home offices, workout equipment for basement gyms, and toys to keep their children entertained.

“The surge in shipping into the U.S. in December 2020, which included a 20.6% increase in containerized freight … was driven in large part by a 34.7% rise in shipments from Chinese ports,” S&P’s Panjiva said in an emailed research note.

As trade volume has risen, rampant Covid-19 infection rates in California threaten to deplete the number of dockers available to work. LA port director Gene Seroka estimates that up to 1,800 dockers may already be on coronavirus-related sick leave, according to Maritime Executive.

“Los Angeles health officials are sympathetic to the concerns… and also acknowledge the essential nature of the work performed by the port employees to maintain commerce across the region, but their hands are largely tied. Like many parts of the country, Los Angeles is facing a shortage of the vaccine calling on the federal government to increase distribution to the hard-hit areas.”

The pandemic has also hit the availability of truck drivers, rail and warehouse workers. 

Container ship operator Hapag Lloyd is estimating that the port congestion will last until the end of February 2021.

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