The American supply chain has thus far been unable to cope with the influx of imports as businesses scramble to replenish inventories depleted by the pandemic.
- Import Issues
- China Power Shortages
- CCP Global Focus Shift
- Logistics Issues
- Port Worker Shortages
- Trucker / Worker Strikes
The Wall Street Journal reported that shipping delays have increased and cargo has piled up at California ports as Nike struggles to sell enough sneakers for the holidays, Costco has imposed limits on paper towel purchases, and prices for artificial Christmas trees have increased 25% this season.
Tens of thousands of containers are stranded at California’s ports of Los Angeles and Long Beach, which handle more than a quarter of all American imports, according to the Wall Street Journal, which reported last month that dozens of ships are lined up to dock, with wait times of up to three weeks.
Indeed, Southern California ports recently broke several records for the number of ships ashore and ships awaiting docking, CBS Los Angeles reported.
The media outlet cited a number of factors as contributing to the bottleneck, including the global spread of the Delta variant, a lack of vaccine access in certain countries, and a shortage of shipping containers and truck drivers.
Each link in the chain in the United States, including shipping lines, port workers, truck drivers, warehouse operators, railways, and retailers, is reportedly experiencing a labor shortage.
In an interview aired today on FOX Seroka said that cargo must be pushed out and truck power matched so that the – “corresponding exports and empties” can return to the port.
“We’ve got about half million 20-foot equivalent units, which is 250,000 containers, they are about two weeks’ worth of work at the largest port in the country,” he said.
“Large orchestra of players in the supply chain need to get on similar schedules.” he said. For him, this means “more regulated service hours of operation.”
What To Expect
Skyrocketing consumer demand in the United States, especially as it pertains to online orders amid the pandemic as more people opted to shop from home.
Leaders of some of the busiest ports in the country expect congestion at maritime gateways to continue well into 2022.