Continued Port and Landside Congestion

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Continued Port and Landside Congestion

Author:

17-Sep-21

Continued Port and Landside Congestion

With a little over three and a half months left in 2021, vessel capacity has yet to show signs of easing up for incoming ships.

That said, Lars Jensen of Vespucci Maritime predicts that it will not improve until late into the first quarter of 2022, as “production in Asia slows down when factories shut for the annual Lunar New Year celebrations”. That equates to another six months of excessive congestion.

This past Monday, the Marine Exchange of Southern California advised of a record 56 container ships at anchorage awaiting berthing space, in addition to 31 container ships docked at the berth already. This congestion is just one instance of many that proves vessel capacity within the trans-Pacific is still at its limits.

Further exacerbating the situation are US imports continuing to put pressure on ports, ramps, and warehouses to get through processes as fast as possible given the circumstances.

Yet another contributing factor is chassis shortages spanning across Southern California to Savannah, and even to Chicago and Kansas City. According to Mike Wilson of Consolidated Chassis Management, “the “street dwell” of chassis with containers sitting on them has more than doubled from 6 days recently to approximately 15 days.

This, combined with crowded warehouses, truck capacity, and labor shortages, has led to slower transportation time for cargo that must move from ports, to warehouses, and to retail stores-- their final destinations.

We will continue to monitor the after effects of port congestion from our end, and revert with any updates.