Supply chain issues to continue until 2022

[FSH 210 Sport]

Supply Chain Backlog to Last Until Summer of Next Year, Despite 24/7 Operating Hours: Officials
BY DREW VAN VOORHIS

October 14, 2021 Updated: October 14, 2021
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Despite President Biden’s announcement Wednesday that the severely backlogged Port of Los Angeles would expand into 24/7 operating hours—similar to the Port of Long Beach—portofficials are saying the backlog will continue until the summer of 2022.
Noel Hacegaba, deputy executive director of the Port of Long Beach, said expanding the ports’ operating hours will not impact the supply chain disruptions given the continued shortage of truck drivers, chassis equipment, and warehouse operations and space.
“We think it’ll be summer of 2022 before we clear all 60 ships,” Hacegaba told The Epoch Times Oct. 14. “Of course, if we take some measures now, and everyone in the supply chain starts expanding their hours of operation … we’re going to get there sooner.”
Hacegaba showed optimism that expanding port hours of operation will encourage the rest of the supply chain to step up their efforts.
“If we had the warehouse capacity, if we had enough truck drivers, enough trucks, enough chassis, to pull those containers, we wouldn’t have the 60 ships which are effectively serving as warehouses on the water. I mean, that’s what they’re doing. They’re storing these containers,” Hacegaba said.
Other experts are more pessimistic about the about the impact of Biden’s announcement, saying it will require a lot more than just the ports to solve the backlog.
“I think the Biden Administration looked at the low-hanging fruit [and finally took action],” said Sal Mercogliano, a professor of maritime industry policy at the U.S. Merchant Marine Academy out of New York. “The move is better late than never … [but] should have been addressed sooner than this.”
Mercogliano said addressing one end of the supply chain does not solve the problem.
“Everything must be done simultaneously,” including not only addressing the current shortage of truck drivers, but increasing operations of receiving retailers as well, he said.
In a virtual briefing Oct. 14, Port of Los Angeles Executive Director Gene Seroka said he was happy to be working with the Biden Administration on addressing the backlog, but was unsure about when 24/7 operations would commence and if all seven terminals at the port would follow suit.
“The anticipation is that everybody will be 24/7, [but] those discussions are ongoing … it’s matching up commitments with how we need to service these folks. The dwell times have been super high, we’ve got to push this cargo out as quickly as we can [and] take advantage of that latent capacity when we’re not using our gates and matching that up with truck power, chassis, and corresponding exports and imports,” Seroka said.
When Seroka was asked when the first terminal would begin operating 24/7, he said more discussions will need to take place.
The two ports, which are responsible for about 40 percent of all imports into the United States, are on track to get more than 20 million container units this year, Hacegaba said, which is significantly more than 17.5 million units in 2020.

 

[Julian]

Fixing the port backlog is just one part....next up....more truck drivers......or perhaps those self driving semi's will get on the road soon???

 

[FSH 210 Sport]

Fixing the port backlog is just one part....next up....more truck drivers......or perhaps those self driving semi's will get on the road soon???

As the article states, which I had forgotten about, ca‘s trucking law AB5 put a lot of independent truck drivers either out of business or they moved out of state, and, more importantly, ca’s ex post facto emissions law making prohibits older trucks from operating inside of ca’s state lines, thereby negating available trucking resources from being exploited. There are many trailers that are either picked up or dropped off in the Bordering states by the trucks CARB has deemed fit to operate in ca.

There are other laws in Oregon that make operating in those states very difficult for independent truck drivers.

When the article mentions “more discussions are taking place” that means the long shoremans union is holding things up, because they want more money. I’m sure their MOU already addresses these issues but, that is how they operate.

There is at least one fully automated terminal in the port where the cranes that off load and load containers, as well as the trucks that move containers to their holding areas is operable. However, the longshoreman union has idled that facility as well.

The biggest problem is the thirst by the American consumer for inexpensive goods coming from nations such as China that have zero emissions laws, labor laws etc…. China has an abysmal human rights record, as well as an abysmal environmental record, companies within the US that have even a shade of these issues are run out of business. But, try and find a bilge pump that doesn’t have CE stamped on it.

 

[adrianp89]

Bring the ships to Florida. It is cheaper and we are ready to unload them as soon as they get here (1-2) weeks. While I don't fully understand the logistics it seems just arrogant to think LA is the only port.

Florida Ports Council urges cargo ships to use Florida ports to avoid California logjam

As dozens of cargo ships sit backlogged off the coast of California, a global supply chain nightmare gets worse, which experts say will lead to the raising of prices of goods for consumers as demand outweighs supply. But the Florida Ports Council believes they have a solution to the problem.

www.abcactionnews.com

 

[Jim_in_Delaware]

Bringing the containers directly into CA does make sense, as many of these originate from China and these (Long Beach and LA) are a straight line from China. I think most US ports are probably seeing an increase in container activity. Locally (Baltimore) there is a 12% increase over last year.

In addition, for long distance moving of containers, trains are commonly use. The containers would be moved by truck to a train yard, loaded onto intermodal rail cars, moved long distances, and then unloaded onto trucks for local delivery. As this is usually an economically way to move containers, this is one of the reasons that 40% of all containers shipped into the U.S. are through LA and Long Beach.

Jim

 

[adrianp89]

Bringing the containers directly into CA does make sense, as many of these originate from China and these (Long Beach and LA) are a straight line from China. I think most US ports are probably seeing an increase in container activity. Locally (Baltimore) there is a 12% increase over last year.

In addition, for long distance moving of containers, trains are commonly use. The containers would be moved by truck to a train yard, loaded onto intermodal rail cars, moved long distances, and then unloaded onto trucks for local delivery. As this is usually an economically way to move containers, this is one of the reasons that 40% of all containers shipped into the U.S. are through LA and Long Beach.

Jim

It doesn't make sense when you have to wait months....It would take less than 2 weeks for those ships to get to FL. That's like sitting on a shutdown interstate when you could take the local highway.

 

[AZMark]

Why Container Ships Can’t Sail Around the California Ports Bottleneck

The armada of vessels waiting offshore keeps growing, and experts say there are few viable alternatives to the country’s main gateway for Asian imports.

www.wsj.com

 

[Jim_in_Delaware]

It doesn't make sense when you have to wait months....It would take less than 2 weeks for those ships to get to FL. That's like sitting on a shutdown interstate when you could take the local highway.

I wasn't implying that some of these container ships couldn't be rerouted to other ports, just trying to explain the normal shipping process for containers. It is almost 5,000 nautical miles (10,000 nautical miles roundtrip) from LA to Miami by sea. It would be a bit shorter if the ships sailed directly to Miami. I would imagine that many shippers have looked at the possibility of landing, at alternate ports, and have done a cost/benefit analysis of doing so.

Jim

 

[Jim_in_Delaware]

On a tangent, the backlog isn't necessarily a negative for all U.S. manufacturers, if they have access to raw materials. My wife and I were at a local, big box, home improvement store two weeks ago looking for a new washer and dryer for our new home. My wife has always like Maytag appliances, so we looked at Maytag and Samsung. In our discussion with the salesman we were told that if the Samsung washer/dryer were not in stock at the warehouse, it could take 7 - 8 months for delivery with a similiar issue with replacement parts. The Maytag washer/dryer, if not in stock at the warehouse, would take a couple of weeks for delivery. Any guess which washer/dryer brand we are buying?

Jim

 

[FSH 210 Sport]

I wasn't implying that some of these container ships couldn't be rerouted to other ports, just trying to explain the normal shipping process for containers. It is almost 5,000 nautical miles (10,000 nautical miles roundtrip) from LA to Miami by sea. It would be a bit shorter if the ships sailed directly to Miami. I would imagine that many shippers have looked at the possibility of landing, at alternate ports, and have done a cost/benefit analysis of doing so.

Jim

And,

Why Container Ships Can’t Sail Around the California Ports Bottleneck

The armada of vessels waiting offshore keeps growing, and experts say there are few viable alternatives to the country’s main gateway for Asian imports.

www.wsj.com

That’s a good article!