The number of containers surged by 217%, and the Port of Los Angeles was almost paralyzed!

As many as 30 container ships have docked , and the schedule is full by the end of March

According to data from global shipping data company MarineTraffic , before Christmas last year , a ship carrying 197 Peloton bicycles and merchandise hovered at an anchor outside the Port of Los Angeles and entered a waiting state on December 22 until it was allowed to dock on January 2.

Traffic congestion at U.S. ports is not uncommon. In order to get emergency products on the shelves in time, many sellers have abandoned sea freight and switched to air freight. According to data from Freightos, an online international freight market, air freight prices have always been more expensive than sea freight, but have been falling in recent months.

In addition, according to February data , Los Angeles' import volume for that month will exceed 500,000 TEUs, and the detailed list of import containers arriving on ships in the first week of March increased by 217% compared with the same period in 2020 .

As of Monday , 30 container ships were anchored outside the ports of Los Angeles and Long Beach, according to MarineTraffic . More than 30 container ships are expected to arrive in Los Angeles by the end of March , with at least 27 ships scheduled to call in Long Beach by then .

(As of March 1, 2021, the ship is waiting to dock outside the ports of Los Angeles and Long Beach)

“ Many vessels, supply chains and logistics providers are currently facing difficulties at the Ports of Los Angeles and Long Beach . Last week, container ships were spending 7.5 days anchored outside the terminals before being able to enter inland , ” said the head of MarineTraffic .

Air freight prices are falling, becoming the preferred mode of transportation

Bottlenecks at ports add costs to sea transport, making air freight, which is usually much more expensive, look relatively cheap, especially when time is saved. Air freight prices have also fallen sharply in recent months .

Data shows that the price of air freight of 250 kilograms from China to the United States has dropped from about 60% of the cost of a full container to about 36%.

(Changes in air and ocean freight rates)

“If a seller wants to ship a hot tub from Shanghai to New York by ocean, it will cost about $1,000 to ship a lighter hot tub , but it will take at least 35 to 45 days , ” said the head of Seko Logistics . “This does not include the additional 7 to 14 days if the seller needs it delivered earlier . ”

He also said that air freight costs about $2,000 to $3,000, depending on the weight. But it only takes three to four days to deliver the goods. Therefore, paying two to three times the cost can save sellers four to seven weeks. In the current situation, sellers need to weigh the balance between timeliness and transportation costs.

Sean Richard, vice president of global air cargo at Seko , does not expect the high congestion at ports to disappear anytime soon.

Richard said that due to cost reasons, large home entertainment items such as table tennis tables and fitness equipment are usually shipped by ocean . But now , due to the surge in demand for products , they have begun to use air freight to shorten the shipping time.

“ Grilling equipment and related items such as patio furniture, inflatable pools, filter equipment, and everything that can be used to improve the home experience in lieu of a family vacation , are now being shipped by air so that supply can keep up with the rapidly increasing demand from consumers ,” he explained .

Another phenomenon that is disrupting the old shipping norm is that recreational vehicles and parts that were once shipped by sea have moved to air. Even vacuum cleaners are being shipped by air , as they have become a hot-selling item in North American households .

Castle noted that the shift to air transport was driven by a combination of factors: companies with narrow windows for seasonal product sales and production-based industries looking to restore some rhythm and catch up on inventory. They were desperate to sell seasonal products in a timely manner, and port congestion exacerbated the need to fill orders and drive demand for air freight.

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