By Patrick Burnson, Executive Editor ·
December 8, 2020
As reported in our news section, our nation’s two largest ports in San Pedro Bay are seeking ways to deal with record-setting cargo throughput…and congestions.
Both ports are among the busiest container seaports in the United States, with the port of Los Angeles having ranked as the number one container port in the United States for the past 20 years, spanning over 7,500 acres of land and water. The port features cargo terminals including container, automobile, breakbulk, dry and liquid bulk, and warehouse facilities. The port of Long Beach is the second-busiest container seaport spanning 3,200 acres. The port serves as a hub for U.S.-Asia trade, handling trade valued at $170 billion annually.
“While the ports have reportedly taken some measures to combat the ongoing congestion, such as announcing financial incentives for truckers and carriers and opening near-dock storage yards, the logistical challenges are likely to continue into the month of December and possibly into 2021,” said Sara Alkawari, Supply Chain Risk Intelligence Analyst at Resilience360.“Supply chain managers depending on operations at the ports of Los Angeles and Long Beach should take note of the increased risk for disruption, activate contingency plans accordingly, and evaluate the benefits of re-routing shipment through other U.S. container gateways.”
Several carriers including MSC and CMA CGM have already announced emergency intermodal surcharges in anticipation of a persistent increase in import volumes at both ports over the coming weeks. Both carriers will implement a surcharge of $350 per container on the transpacific trade lane that move out of the port complex to U.S. inland point shipments, with provision of carrier haulage, pre-carriage, or on-carriage door service. In addition, Hapag-Lloyd will implement an emergency surcharge of $180 for all containers requiring truck moves from or to the ports from December 12.
In light of the challenging situation, supply chain managers have increasingly turned to ports further north on the U.S. west coast.
The volume of imports from Asia through the Northwest Seaport Alliance, which includes the ports of Seattle and Tacoma, has increased by almost 20 percent from September to October.
And it’s important to remember that both ports have direct rail connections to the Pacific Northwest and Midwest regions, and have experienced significantly less congestion levels in the past months.
December 8, 2020
About the Author
Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
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