Record-breaking container ship congestion at Los Angeles and Long Beach ports

The resurgence of the global COVID-19 pandemic this year has had a certain impact on various industries, among which the impact on the shipping market is particularly prominent. The long-standing problem of port congestion has never been effectively alleviated, and port congestion in many parts of the world has set a new historical record.

On August 26, the number of ships waiting for berths to open at the two largest container ports in the United States reached 41 , more than the number of ships that were anchored on the port strike day in 2004 .

The latest data from the Port of Los Angeles shows that about 90% of ships directly join the anchoring queue when approaching the port , with an average anchoring waiting time of 7.8 days. According to the data from the Port of Los Angeles, the port's cargo volume is still growing significantly in the 35th and 36th weeks of this year . It is expected that the cargo volume in the 36th week will increase by 29.72% compared with the 35th week . The port congestion situation is still not optimistic!

As congestion in the ports of Los Angeles and Long Beach is difficult to ease, it is understood that a considerable number of shipping companies have begun to allocate more capacity to Oakland and Seattle-Tacoma , where congestion is less severe , although most of the terminals of the Northwest Seaport Alliance (NWSA) have also become congested recently.

As the Pacific route enters its traditional peak season, import volumes at the three West Coast gateways of Seattle, Oakland and Long Beach have hit new records. However, at present, these three ports still have major operational problems , with importers using marine terminals as storage yards, low loading and unloading efficiency, and containers staying too long , and port congestion is also increasing .

Port congestion and container ships queuing to dock cause delivery delays, which in turn increase consignee channel inventory costs exponentially, and prices will also rise accordingly.

However, the congested shipping conditions have forced consignees to prepare and load goods in advance to ensure the inventory for the upcoming key sales seasons - Black Friday and Christmas. The advance preparation, busy shipping, port congestion, and the difficulty of finding a container ship are also important reasons for the surge in shipping costs .

The surge in shipping prices has led to an unprecedented boom in the global shipping industry. According to statistical analysis, the overall operating profit of global shipping companies is expected to reach US$100 billion this year !

Long queues at two U.S. ports set new records