Ice and fire! U.S. port congestion will last until the second half of the year, and money will be distributed this weekend

US ports are severely congested , with queues 20 kilometers long

According to foreign media reports, the congestion in US ports has not been alleviated, with more than 30 ships anchored in San Pedro Bay, waiting in Los Angeles and Long Beach, and the queue stretching 20 kilometers along the coastline .

In northern California, 12 ships were waiting in Oakland . On the East Coast, traffic jams were much less severe overall, but there were still pockets of traffic, especially at the Port of Savannah, where 13 ships were anchored this morning , waiting for the use of a small pier.

There is little sign of congestion easing, with Gene Seroka, director of the Port of Los Angeles , saying it would take a month just to clear all the ships docked at his port, let alone those coming in from Asia.

Vessel punctuality has been at or near historic lows for months , falling to 13.8% from Asia to the U.S. West Coast. In some ports, ships continue to be congested, waiting seven days or more …

The eeSea map below clearly shows all vessels coming into Los Angeles and Long Beach over the next 28 days.

Imports on both sides of the strait will surge, the National Retail Federation (NRF), which forecasts record growth in retail sales in 2021, said this week.

The world's top container conference held earlier this month came with the message that port congestion will not improve and container trade will not return to normal until the second half of this year .

The ports of Los Angeles and Long Beach are already congested, and if trade volumes do not decrease in the second half of the year, the congestion will last at least until the summer, and possibly longer.

Numerous executives at ports, ocean carriers, terminal operators, non-vessel operating common carriers and third-party logistics providers say recent indicators on truck driver wait times, container dwell time and the number of vessels at ports have generally remained flat, suggesting the situation has not materially improved but has not deteriorated either .

How long the congestion lasts depends largely on import volumes between now and the start of the peak season in August. Gene Seroka, executive director of the Port of Los Angeles, said weekly import volumes so far this year are 30% to 40% higher than the port saw in 2019 and previous years.

Congestion at ports has increased the cost of ocean freight, making air freight look relatively cheap by comparison , especially given the time it takes to ship . Air freight prices have also fallen sharply in recent months.

Industry insiders say the cost of shipping 250 kilograms of goods from China to the United States by air has dropped from 60 percent to about 36 percent, making air freight a more attractive option because of its much faster capacity and transit time.

Weekend money distribution! Biden signs $1.9 trillion economic stimulus bill

Americans have been waiting for a long time, and sellers have also been looking forward to the $1.9 trillion cash distribution plan for a long time and it has finally been settled.

Foreign media reported that Biden signed the $1.9 trillion economic stimulus bill on Thursday local time in the United States , one day earlier than expected.

The White House then set an accelerated timeline to get the new stimulus package implemented.

" People can expect to start seeing direct deposits hit their bank accounts as early as this weekend . Of course, this is just the first wave. Payments to eligible Americans will continue to roll out over the next several weeks. "

It is reported that the bill includes the following (partial):

1. Individuals earning less than $75,000 a year will receive a direct payment of $1,400.

2. The US rescue plan extends the $300 federal unemployment benefit guaranteed by the second round of economic stimulus plan to September 6.

3. Families with children under 6 will receive a tax credit of $3,600 per child, while families with children 17 and under will receive a tax credit of $3,000 per child.

4. The government will pay the insurance premiums of all Americans who are laid off .

5. Through the end of next year, the American Rescue Plan will provide $34 billion in subsidies to Americans who purchase health insurance plans on the marketplace created by the Affordable Care Act .

The United States has implemented several economic stimulus plans since last year to fight the new coronavirus and provide assistance to tens of millions of Americans affected by the coronavirus economy. But at the same time as Biden signed a new round of economic stimulus bills, the extremely high number of deaths from the new coronavirus in the United States also became a hot topic on Weibo.

Statistics from Johns Hopkins University in the United States show that as of 16:26 EST on March 11, the United States had a total of 29,200,016 confirmed cases of COVID-19 , with more than 530,000 deaths , or 530,423. In the past 24 hours, the United States had 62,630 new confirmed cases and 1,771 new deaths.

E-commerce demand is strong, and storage facilities near seaports, railways and airports are tight.

After experiencing its strongest quarter ever for leasing warehouse space, the U.S. industrial real estate industry expects strong demand for distribution facilities near seaports, inland rail hubs and airports to continue into 2021 and beyond.

According to industrial real estate professionals who spoke at JOC’s virtual TPM21 conference last week , demand will be driven by e-commerce fulfillment, as retailers rush to keep more inventory because of supply chain uncertainty and third-party logistics providers ( 3PLs) are seeing growing volumes of business. Smaller shippers that can’t compete with larger e-commerce retailers for space are turning more business to 3PLs, real estate experts told TPM21.

All fundamentals in the industrial sector point to strong growth. According to CBRE’s U.S. Industrial and Logistics report released in early March, industrial space took up a record 104 million square feet in the fourth quarter of 2020, bringing the total for the year to 223.5 million square feet. Total leasing this year is 11.8% higher than in 2019, according to CBRE. The momentum that began in the second half of 2020 is expected to continue into 2021.

In particular, demand for warehouse and distribution space near seaports, airports and inland hubs is accelerating. “Demand is off the charts,” James Breeze, global head of industrial research at CBRE, said at the TPM21 event.

Not only that, Amazon and other large e-commerce shippers, including national home improvement and retail chains that sell both online and in-store, have focused on larger properties. In 2020, a record 48 deals were signed for facilities of 1 million square feet or larger, according to a CBRE report .

“The big companies are crushing the smaller companies that are looking for square footage, ” Matt McGregor, executive vice president of Colliers, told TPM21 .

Online shopping is expected to account for a larger share of total retail sales in the coming year. "E-commerce has a long way to go," McGregor said. He said e-commerce as a percentage of total U.S. retail sales rose from 5% in 2009 to 15% in 2019, but by the second quarter of 2020, e-commerce accounted for 35% of total U.S. retail sales.

Strong demand has disrupted the entire international supply chain over the past year. Marine Intelligence maritime analysis shows that ship on-time performance has been at or near historic lows for several months, falling to 13.8% from Asia to the West Coast of the United States in January and to 21.5% on the East Coast.

Retailers and manufacturers have been dealing with supply chain uncertainty over the past two years because of the U.S.-China trade war, but the coronavirus disease 2019 (COVID-19) has amplified those issues, said Melinda McLaughlin, vice president of research at real estate investment firm Prologis. In addition to seeking more warehouse space to handle larger inventories, U.S. retailers are also looking for properties with large container yards to store containers on chassis, she said.

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