Port Congestion Spreads Across More U.S. Import Gateways

[former9thward]

Port congestion is spreading across the country, threatening to extend shipping delays and drive up costs for importers seeking to get around the bottlenecks at Southern California’s big gateway complex.

Container ships are backing up off coastlines from Oakland, Calif., to Charleston, S.C., because of a record flow of boxes into and out of the country combined with worker shortages triggered by Covid-19’s fast-spreading Omicron variant.

“It’s supremely frustrating to be an importer right now,” said Nathan Strang, director of ocean trade lane management at Flexport Inc., a San Francisco-based freight forwarder. “Everybody wants to find a relief valve and all of the relief valves have been plugged.”

Ship backups that plagued U.S. ports throughout the pandemic have been mainly concentrated along the West Coast. Niels Madsen, a vice president of operations at Denmark-based Sea-Intelligence ApS, said a rise in backups at East Coast ports suggests congestion is worsening there.

https://www.wsj.com/articles/port-congestion-spreads-across-more-u-s-import-gateways-11643397131

[Klaralven]

1. Ports are congested because shipment volumes are at all time record highs

[zipplewrath]

2. No single reason

Yes, volumes are at an all time high, but all of the links in the chain that would allow this increase to be addressed are under duress. The physical infrastructure to handle more ships isn't there. The longshoremen to work the docks are under duress due to the pandemic. The trucks don't have enough drivers. There aren't enough trucks. There aren't enough customs inspectors, and those that there are are affected by covid. Truth is, there are problems at the ports in Asia to even get product on ships. Every single aspect of the supply chain is under duress.

And to a great degree the "global supply chain" concept has always been a myth. "Just in time" works well when the supply is a few hours from the factory. When it is half way around the world, it still takes months for the supplies to get there. It is why it takes 2 - 5 years to set up the supply chain for a car for example. A container ship sails at about 7 knots. That's basically 8 mph. That's all the way across the pacific. "Global supply chain" has always been about "global wage avoidance". All the other reasons were bunk.

[crickets]

3. 👆👆