Shipper Alert: West Coast Port Congestion Expected through Lunar New Year

2018-12-20T20:45:55+00:00December 20th, 2018|Domestic, Freight Market, Import, Shipping News, Warehousing|

As reported earlier this month, U.S. West Coast terminals in Los Angeles and Long Beach are experiencing heavy volumes and severe congestion that is expected to last through the upcoming Lunar (Chinese) New Year.

5 TOP CAUSES OF U.S. WEST COAST CONGESTION

1. EQUIPMENT & CHASSIS

For West Coast supply chains, containers have been sitting at terminals longer and once out-gated, are taking more time to return, aggravating an already exacerbated chassis shortage.  Capacity to move equipment, however, is low, resulting in additional demurrage and detention charges issued by shippers and ocean carriers.

2. TARIFF-LED INVENTORY MANAGEMENT

Shippers have also been front-loading inventories in advance of Section 301 tariff increases (although the January 1stincrease has been postponed until March), adding even more volume to the popular trans-Pacific routing and filling local warehousing almost to capacity.

3. CARRIER CAPACITY

Steamship lines added 15 vessels, including three brand new up-sized ships, to help with demand; but due to the severe congestion from large vessel deliveries, some ships have been forced to deliver to alternative terminals, displacing chassis and equipment even further.

4. LUNAR (CHINESE) NEW YEAR

In 2019, the Chinese New Year festival will begin early, February 5ththrough February 19th, during which time, all production and manufacturing is shut down with no freight movement during the 15-day celebration.  This puts greater pressure on shippers trying to import cargo from China amid blank sailings before the 25% March tariff deadline.

5. LABOR

Labor problems have also been adding to the friction.  Experienced longshoremen and warehousing workers are used to taking vacation during the slow, post-peak December shipping, but with volumes and delivery expectations high, the absence of seasoned talent has put a dent in productivity.

West Coast supply chains should expect delays or consider alternative routings.

For additional nationwide warehousing availability, contact your Green Worldwide Shipping freight experts today!

Stay up-to-date on freight news by following Green Worldwide on FacebookTwitter, and LinkedIn. For continuous updates, make sure to check out our website at greenworldwide.com.

share this information

Go to Top