Strategize to Outmaneuver Obstacles

Newly released Coast Guard footage of (Southern) California's San Pedro Bay reveals how extreme congestion in U.S. ports. Driven by record imports, the number of container ships at berth in Southern California started to ramp up in July. A steady rise in the number of ships at anchor began in November.

By year end, the number of container ships at anchor had risen to 30. It has remained between the high 20s and up to 40 ships ever since.

Meanwhile, the number of ships at the berths in Los Angeles and Long Beach has remained in the high 20s and low 30s. To put that in perspective – the number of truckloads sitting offshore is in excess of 200,000 vans (truckloads).

These delays mean that consumer goods will be late to market. Some retailers report shortages of Spring apparel. Some manufacturing and assembly lines are short of needed components.

All terminals continue to suffer from severe congestion due to the spike in import volumes.

While all the port employees have started to be vaccinated, the terminals continue to work with limited labor and split shifts (COVID-19 related). The demand for available labor affects all terminals.

Trucking continues to be heavily delayed due to lack of trucking power - generated by terminal congestion and COVID-19 - on all door and ramp intermodal moves. The UP rail has limited the access to many US inland ramps due to capacity constraints and railcar shortages. This has created a serious backlog in all the on/off dock rail services ex SoCal to all main destinations and is generating delays of more than a week into some inland ramps.

The situation is similar at Oakland and the Pacific Northwest ports as well. This week, the UP put an embargo on shipments to Oakland from many ramps, including Salt Lake City.

On the East Coast, New York is jammed (but no ships at anchor); Savannah has 20 ships waiting offshore.

The lead time to schedule trucking ranges from 30 days in Southern California to 15 days across the east coast.

Add in the looming strike at the port of Montreal and the shortage of containers, chassis and railcars and the outcome is increased freight rates, frequent delays and missed appointments.

At Special Logistics Group, we have been working with our clients and vendors in a partnership to minimize the adverse impacts.

Through alternate routing, flexible load planning, and strategic spending to avoid greater future costs we are moving cargo for our partners.

We continue to emphasize flexibility and cooperation between all parties. Understand and appreciate the current limitations and choke points in the supply chain. Expect challenges. Expect higher freight rates. Expect longer transits.

If the whole situation is wearisome, we would be happy to help. We have solid routing to East Africa, Central America and Hispaniola from US origins.