Congestion at the Ports of Los Angeles and Long Beach
Importers shipping through the Los Angeles and Long Beach Port Complex should expect congestion for at least another month. The ports are experiencing equipment shortages, congested marine terminals, long truck turn times, and warehouses that are currently beyond capacity.
The reasons for the extreme congestion at the ports include front-loading of spring shipments ahead of the 25 percent tariff increase on Chinese products, an increase of imports in December (21.4 percent year-over-year), and warehouses that are over capacity. Since November, the ports of Los Angeles and Long Beach have had an additional 34 extra-loader vessels on top of the more than 40 regularly scheduled weekly services.
With warehouses in Southern California over capacity, goods are sitting in loaded containers on chassis throughout the region causing an artificial chassis shortage. Containers and chassis are not moving as quickly out of the terminals and they are remaining off dock for longer periods of time.
Additionally, the recent decrease in U.S. exports has led to fewer dual transactions, where the driver delivers and receives a container at the same terminal, resulting in a driver’s productivity being cut in half.
Importers may not see relief of the congestion until imports from Asia decrease next month during Lunar New Year celebrations.
For more information please contact your Krieger Worldwide representative