Container Ship Port Backlog Breaking Both Ends of the Supply Chain

Photo: REUTERS/Lucy Nicholson

The Marine Exchange of Southern California reports a new record for congestion in the ports of Los Angeles and Long Beach. As of Monday, of 140 ships in the ports, 85 are container ships. Only 31 containerships are alongside the piers loading or discharging, however. 56 are at anchor or simply adrift offshore awaiting berth space. This is the fourth time in three weeks that Los Angeles and Long Beach ports have hit a new record for backups and delays.

Pent-up demand from the pandemic has triggered a flood of inbound trade with China, overtaxing port and distribution hubs already struggling with COVID-19-related disruptions and a national labor shortage.

The disruptions, however, are not limited to the North American side of the Pacific. Last month Reuters reported that Chinese ports are facing congestion as vessels due to call at Ningbo are being diverted and cargo processing is slowed partly due to stricter disinfection measures under China’s “zero-tolerance” coronavirus policy.

In mid-August, more than 50 container vessels were queuing at Ningbo port, China’s second-largest marine center, Refinitiv data showed, up from 28 on Aug. 10 when a COVID-19 case was reported at one of its terminals.

“China’s zero-tolerance policy is good for the pandemic but bad for the supply chain,” said Dawn Tiura, chief executive officer of Sourcing Industry Group, a U.S.-based association for the sourcing and procurement industry. “This timing is very tough considering the uptick in back-to-school and return-to-work shopping in addition to the upcoming holiday shopping season.”

The disruption all along the supply chain has driven rates skyward. Average market rates for a 40′ container have risen from around $1,500 in June 2020 to a record price of over $10,300 in August 2021.

Comments

Container Ship Port Backlog Breaking Both Ends of the Supply Chain — 4 Comments

  1. One other remark: while it’s true that container ships using rarely employed anchorages will have a disproportionate effect on local marine biology per the article above, also per that article this is what it looks like when Whidbey Island residents find their lifestyle catching up with them and heaving into direct view. We’re all living out of containerships.

  2. Anchor chains scour the sea bed as the vessel swings destroying sea grass and the habitat of many creatures. So it is better if vessels use mooring buoys but I suspect they would balk at paying mooring fees.