Cargo movement data tracked by project44 shows that congestion has increased again across all four major Southern California ports (Hueneme, Los Angeles, Long Beach, and San Diego), and that 41 vessels are currently anchored outside of LA and Long Beach awaiting berth space, while 33 are currently moored at both ports.
This data indicates that regional ports are rallying, handling record volumes as shippers rush to get products to warehouses and store shelves in time for the holidays.
- Industry experts attribute the latest surge to proactive shippers, who are bolstering their inventories in preparation for the holiday season. However, processing the influx of containers across west coast ports is running up against capacity issues facing North American rail and road carriers, as inland congestions tacks on additional delays.
- Despite the record number of containers being processed at the Port of LA and Long Beach, the rail and road infrastructure on the West Coast is preventing the efficient removal of containers out of the port.
- According to project44 data, the average weekly dwell times at LA and Long Beach have dropped by nearly 3 days last week indicating a strong rally to handle the backlog of container vessels.
- Blank Sailings to Long Beach connecting Chinese manufacturers to U.S. businesses are not showing significant changes, signaling that carriers are either confident of the port’s ability to process the box volume, or that there are simply no other alternatives.
- But, the capacity/volume mismatch between maritime ports and overland transport could get worse in the weeks and months ahead, setting the stage for another breaking point in supply chains.