West coast port congestion 2022. In 2023, China exported goods worth $3.
West coast port congestion 2022 In a bid to play catch up, some railroad companies like Union Pacific and BNSF declared embargoes to mitigate backlog and disruptions sparked by labor challenges and elevated inventory levels. 4 days at the end of March due to the lack of chassis and rail equipment. Adam Yanelli. The current situation and capacity constraints are expected to continue until the first half of 2022. 8 days, that number used to be 11, and dock on rail dwell of 5. This article provides an environmental view of acute maritime congestion in Los Angeles and Long Beach anchorage US West Coast Ports Congestion. By Mike Wackett in Long Beach (The Loadstar) – According to Chris Dodd, head of operations at lingerie manufacturer Gelmart International, fewer shipments means less congestion but comes with other problems. 6 million container units, Seroka said. The West Coast has seen the largest improvements while the East Coast Congestion Escalates at Canadian West Coast Ports as ILWU Impasse Continues July 14, 2023. While container imports to the east coast were up 27. While these numbers are certainly encouraging, it may be too soon to breathe a sigh of relief. Ports on the US West Coast have also experienced bouts of congestion over recent years. 5 trillion in 2022. on the US West Coast also exposed the vulnerability of the intermodal chain, where the congestion in ports was manifested with higher utilization of trucking services inland, contributing to the increase of overall emissions. While West Coast ports have pointed to “record enough with the widely reported congestion on the West Coast. Demand at the ports has also dropped significantly. On the West Coast, congestion levels have crept up slightly- after major reductions of late 2022. The U. 9% growth of container imports. ports finished in the top 30: the Port of Los Angeles/Long Beach (No. 07-Jan-2022. The working group includes relevant DOT modes and the U. Early indications are this strength continued in As other retailers scrambled to divert their cargo from the West Coast, The Children’s Place’s inbound supply chain encountered East Coast port congestion in Q2, which Weekly Vessels Anchored and at Terminals as of 2/17/2022 LA & LB: Anchored 3 | Terminal 29 | Loitering 72. West Coast Port Congestion March 16, 2022 Nelson International News. 5% so far in 2022, compared with 30. I t’s no secret that the West Coast freight surge is building toward an even more feverish pace this fall. While the media focus is on the reduction of vessels in queue within the San Pedro Bay, the reality remains with the overall containership queue at U. The current contract between the two entities expires on June 30, 2022. The West Coast of the United States has found itself in the grip of port congestion, a labor dispute of more than 22,000 dockworkers at nearly 30 ports across the West Coast has been ongoing since July 2022 causing workers Importers would have to prepare for a slowdown in arrivals through the West Coast ports and The Chamber In a unique reversal of fortune, U. By slowing, fuel economy has since improved, as have exhaust emissions, satisfying the concerns of U. The Port of New York/New Jersey experienced a 3. ’s largest port complex in Southern California, unionized dockworkers have strengthened their indispensable role in the supply chain. This was largely due to a surge in imports from Asia, driven by increased consumer demand during the pandemic. However, they are still taking no chances. Congestion in most parts of Asia has eased, however, it continues to escalate in North America, with both west and east coast ports reaching new record highs during the last several days. com Subscribe To Blog. Even as congestion and demand subsided in 2022, cargo diversions did not slow down as many shippers feared another risk on the horizon: potential disruption from West Strong consumer demand drove a surge of imports to ports all along the west coast of North America in 2021 and 2022, causing congestion that has eased since December, said Vancouver Fraser Port (Chart: McCown Container Volume Observer) Imports to the top West Coast ports totaled 978,844 TEUs in August, down 11. "A West Coast labor strike could be the biggest issue for shipping this year," a Rail cars piled up at West Coast ports, creating significant congestion that threatened to disrupt transport of critical commodities such as diesel and food. The labor negotiations are taking place as key West Coast ports continue to grapple with congestion and an increasing amount of aging cargo on docks as summer and peak shipping season loom large The PMA represents shipping lines and terminal operators at 29 West Coast ports. There has been a gradual build up of ships waiting at the Canadian west coast ports of Vancouver and Prince Rupert as the ILWU Canada impasse stretches into a second week, with the total capacity of ships at the Puget Sound/British Colombia anchorages hitting Beach, the anchors of 29 West Coast ports that support 12. ’s two largest ports of Los Angeles and Long Beach. The significance of the expiry and renegotiation of this agreement cannot be overstated as it covers operations at all US West Coast ports from Puget Could congestion that plagued West Coast ports in 2021 actually get worse in 2022? That all depends on whether a new contract can be finalized between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU). This transition, albeit slow, has built momentum over the first half of ‘22, shifting congestion out of the West Coast ports to the East and Gulf Coast ports. On the U. 5%, 16. 6 percent year over year in the first 10 months of 2022, according to PIERS, a Journal of Commerce sister product within S&P Global — and operational improvements implemented by terminal operators all but cleared congestion from West Coast ports, especially Los Looking Forward at 2022. Truck Movement Increase, Dwell Time Increase could mean the facilities are getting congested serving more than usual trucks. 3 trillion, down from $3. The San Pedro Bay ports are also levying a surcharge on ocean carriers whose containers languish too long. 1% from the first eleven months of 2019. For instance, some shippers have found Canadian ports (e. Photo via the Port of Long Beach. 2 million TEUs. 866. Fearing that another rail meltdown similar to the one that occurred last summer is imminent, West Coast port managers and terminal operators are urging the Class I railroads to immediately boost their deployment of railcars and locomotive power in Los Angeles-Long Beach, Oakland, and Seattle-Tacoma. That means less fuel , less risk DP World Prince Rupert’s Fairview Container Terminal saw a 2 percent decrease in its intermodal volumes in 2022. In a statement, ILWU International President Willie Adams said negotiations are still underway. The congestion at US West Coast ports offers an opportunity to gateways on the East Coast, according to senior officials at the Jacksonville Port Authority (JAXPORT). Traditionally, this would be the time for West Coast ports to really get clearing left over congestion from the peak and holiday seasons. The diversions are taking a toll on the East Coast ports. Versus June 2022, only Houston held its delay time while the other top East Coast ports regressed. 7 days. ME as a new BCP-compliant multimodal transport service via Mexico, where space is more readily available, to avoid port congestion on the US West Coast and maintain customers' supply chains. V essel congestion is starting to escalate on the west coast, particularly at the Oakland Port due to truckers protesting the new AB5 legislation. July 2022 showed reduced delays at the two largest West Coast ports, but rising wait times at East and Gulf Coast ports (See Figure 3). We could be witnessing a reversal of last year’s diversion of import volumes away from the West Coast to the East and Gulf Coasts. But today, it may represent another sign that shippers are diverting more product east. In this blog post, we use data on the price of shipping between several different origin countries and three of the biggest U. “Disruption to global logistics and supply chains remains widespread, with the Ukraine conflict and new Covid-19 lockdowns in shipping’s biggest market, China, contributing to further elevated levels of delay across the global maritime transportation system,” Hellenic Shipping RAIL CAPACITY AND CONGESTION. 5 million jobs nationwide and generate nearly 9% of the country’s Gross Domestic Product. West Coast port operations were disrupted for months when contract talks hit an impasse in 2014-2015, causing many shippers to divert to the East Coast wherever possible. Many West Coast ports would already be operating at full capacity, so they would become congested very quickly. Loaded imports were up more than 23% YoY for The Port of Los Angeles in December and nearly 26% YoY at the Port of Long Beach. That clear-up time will now significantly worsen, given that scores more container vessels are currently heading for west coast ports on “That’s why we are pleased to see a 3% bump in our West Coast market share compared to East and Gulf Coast ports. My The Domino Effect of West Coast Congestion. 2% and 15. According to a new study by maritime economist John Martin, PhD. When container ships jumped from carrying 6,000 Twenty-foot Equivalent Units (TEU’s) to 10,000 or more TEU’s per vessel, Beneficial Cargo Owners On-dock rail near the Port of Long Beach’s Pier T. FREIGHT RATES AND TRANSPORT COSTS 63 The resulting congestion reduced global container shipping capacity, which between December 2021 and September 2020 fell by 16 per cent. While the spotlight has primarily been on US West Coast ports, most major ports in the US East Coast and Europe have been affected as well. 7% in Facing high import volumes, the ports of Los Angeles and Long Beach are ramping up to 24/7 operations to help ease the congestion that experts say could continue well into next year. Georgia’s Port of Savannah handled 211,056 inbound loads in November, a year-over-year decline of 3. 6 percent year over year in the first 10 months of 2022, according to PIERS, a Journal of Commerce sister product within S&P Global — and operational improvements implemented by terminal operators all but cleared congestion from West Coast ports, especially Los West Coast ports such as LA-LB return to pre-pandemic volumes, Port of NY-NJ reports no port congestion, just delays, In total, US imports last year dropped 12. As ocean freight rates dropped in early 2023, shippers were hopeful of a return to normal and a drama-free peak season. There are signs of shipping disruptions easing but movements in demand and inflation will continue to threaten supply chains. Nippon’s U. West Coast Ports Losing 1 Million TEUs Per Year to Eastward Import Shift Despite Congestion, West Coast Ports Will Have to Negotiate with ILWU in 2022 Report this article Olga Lyakhovetskaya All four West Coast ports yielded double-digit year-to-date (YTD) increases through July compared to one year ago, with the as Chinese ports accounted for 12. 9% from 2022 to approximately 24. While demand has cooled significantly from 2022’s highs, imports to major east and Gulf coast ports through to May 2023 are still 9. The top two commodity codes (HS-2s) continued to be consumer-oriented goods such as HS-94 West Coast ports recapture share versus East and Gulf Coast ports. The Port is currently the only U. Advertise Forum Jobs. With COVID infections again on the rise and shutdowns again occurring in Asian ports, it certainly seems like the supply chain congestion that has been impacting the flow of goods around the world will not be abating anytime soon. The vessel line up, yard congestion, and rail status markers are in the red. Vessel Congestion Update. Big Ships at the Heart of West Coast Port Congestion. BTS freight information is organized into four Although the total number of container ships waiting to berth at U. 6% year over year may be a sign of increased congestion in ports like Charleston and Savannah though there has been a dip so far in Q3’22 Although the congestion is slowly being cleared, there is labour uncertainty looming with the contracts of 15,000 port workers expiring on July 1, 2022. Nelson International / News / West Coast Port Congestion. , Prince Rupert) to be less congested than those in Southern California and still provide rail services July 22, 2022. Our vessel-tracking data shows non-domestic arrivals to major Since October 25, 2021, the combined decline of on-dock cargo was reportedly down by 44%. Photo courtesy Port of Los Angeles. 5 and $26. The problems at the west coast ports of the United States are widely known. Comparing the top five West Coast ports to the top five East Coast ports in March 2022 versus February 2022 shows that, of the total import container volume, East Coast ports declined to 41. However, noting the ongoing congestion at West Coast ports, and the big surge of cargo from China predicted after lockdowns there are eased, McKenna said increased volumes would “put leverage on both of us. Sep 28, 2022 11:00am East Coast ports have taken on a record number of containers, some of them diverted from the West Coast. 5% while the east coast experienced a 9. The Logistics Management editorial team presents the top 10 logistics stories of 2022. 5% y/y, weighed by a 17% plunge at the Port of Los Angeles (partially driven by cargo switching to Long Beach due to a union issue at one LA terminal). the West Coast dockworkers and the ports expires June 30, 2022, Port and terminal congestion is continuing to impact the operations of the major container carriers into 2022. As of June 30, 2022 the new Under Assembl y Bill 5 (AB5) went into effect. Services. ports imported nearly a half-percent more in the first quarter of 2022 than during the first three months of last year. The previous contract between the parties, which expired on July 1, 2022, represents more than 22,000 dockworkers at all 30 U. In this report, we examine the container vessel congestion situation in US ports over the past two months. Part of the shift to East Coast ports can be attributed to the growth of Chinese imports and shippers’ decisions based upon last year’s West Coast port congestion. Canada's ILWU Local 514 and it's employer BCMEA have not reached an agreement despite involvement of the FMCS this week and have issued the 72 hour notice of the strike starting November 4, 2024. 2 Chinese export hubs such as Shanghai, Qingdao and Tianjin, were exceptionally congested, mainly The end of Shanghai’s lockdown will unleash a backlog of cargo on West Coast ports—the world’s least efficient docks, S&P says. After a messy 2022, the West Coast is starting 2023 nearly congestion-free as worries rise about how much market share has been lost to the East and Gulf coasts. and New York-New Jersey—to examine the role of port congestion in the June 30, 2022. June 2024 U. Try ICIS. “Shipping prices are expected to rise through March 2022 with the record crop volumes from 2020 and those expected for 2021,” Snell said. 826. west coast port congestion Thursday, April 13, 2023. May 31, 2022; Industry News, Regulatory Updates; Lack of rail capacity, threatens West Coast port flow. West Coast states as the prevailing wind blows onshore. To avoid the congestion at major west coast gateways, US importers have now clogged up ports elsewhere and, The strongest driver of this has been the shift of Asian imports from the traditional west coast gateways to ports on the US east and Gulf coasts, Congestion, Delays and Supply Chain Challenges Will Continue into 2022 (Port of Los Angeles and nearly 22 days on the worst-hit China to U. 3. Los Angeles carrying more than 5,300 pallets of grapes and stone fruit. entered the country via East Coast ports, compared to just 36 percent going through the West Coast. Coastal performance trends across the last three months (YOY) show that the East/Gulf Coast ports have consistently higher growth than West Coast ports. But the slowdown hasn't gone away: Instead, the same overabundance of cargo can now be found at Houston, which is the biggest container port on the U. What the East and Gulf coast port strikes could mean for the Port of LA While workers at West Coast ports are not on strike, consumers may feel the effects this upcoming holiday season. There might be more turbulent times for West Coast ports, and the wider supply chain, around the corner. The congestion on the West coast can be seen “as an opportunity” to demonstrate JAXPORT’s expertise in customer services and its wider economic appeal, according to Beth McCague, After months of pandemic-influenced congestion at maritime ports along the U. Oakland had 6. By Laura Curtis, Mar 26, 2022 Nation’s Supply Chain Threat Diminishes With West Coast Port Deal June 15, 2023; west coast port congestion. The port of New York had 18 ships waiting to be unloaded the week of May 22 nd. Container ship congestion shifts from US West Coast to US East Coast. BY Nicholas Gordon. The four main ports on the West Coast recorded cumulative traffic of 24. Port congestion issues aren’t just restricted to Asia. 4 during the dark days. West Coast ports have the lowest combined waiting times as well as the lowest combined vessel counts for ports on any North American Coast. ” Despite the increase in volumes YoY for December, the port as a whole processed less cargo in 2023 compared to 2022 levels, representing a 13% decline at 8. The ocean voyage for trade vessels is 40 hours shorter from Prince Rupert to Shanghai than it is from Vancouver. 8% growth over June N. West Coast Ports Losing 1 Million TEUs Per Year to Eastward Import Shift US West Coast: Levels of congestion at Long Beach and Los Angeles remain at record highs. In September 2021 as many as 73 were off the coast. 11, 2024 (GLOBE NEWSWIRE) -- ITS Logistics today released the December forecast for the ITS Logistics US Port/Rail Ramp Freight Index. Ports on the East Coast are starting to see a decrease in vessel delay, as both the Ports of Houston and Savannah saw the median waiting time reduce by ~1 day. There have been improvements on the West Coast ports with the exception of Oakland where the backlog of vessels stands at 16 ships. The study notes that severe congestion due to record Asian imports during the Covid-19 pandemic underscored the need to enhance operations in Southern California ports to stanch the loss of market Port congestion in the US has shifted eastwards with more vessels now waiting at New York and Houston ports than Los Angeles and Long Beach. To avoid potential disruptions at West Coast ports should contract talks stall, shippers have been diverting containers to East Coast ports. Full story. This transition made sense to shippers at the start of this year, as West Coast ports — especially the ports of Los Angeles and Long Beach — witnessed over 100 container vessels queuing up in the San Dockworkers at Los Angeles, Long Beach and 27 other West Coast ports have ratified a new six-year contract, bringing labor peace that experts said should help attract more business and jobs. Operations at the port have been halted. While these numbers are certainly encouraging, it may be too soon to breathe a sigh Any port congestion The cost of shipments from Asia, which can more easily be diverted to the west coast, including high prices despite inflation’s steady fall since its peak in 2022. Export Service via Mexico The Port of Long Beach also had a banner month, with a total of 796,560 TEUs (a 3. Vessel Waiting time at/around the anchorage. supply-chain crisis released a study extolling the benefits of automation a week before the start US west coast: levels of congestion at Long Beach and Los Angeles remain at record highs Levels of congestion have also risen at import destination ports, especially off the Californian ports of Long Beach and Los Angeles, as containers waiting have continued to rise significantly since July 2021. Congestion has cleared up at the twin ports of Los Angeles and Long Beach, which together make up the busiest container-terminal complex in the United States. The new six-year contract is retroactive to July 1, 2022 and will run through July 1, 2028. But recently, you name a supply-chain issue, and the two West Coast hubs that account for almost 40% of the country’s imported goods are likely suffering from it. With congestion at the Ports of Los Angeles and Long Beach far from resolved, East and Gulf Coast ports have an opportunity to keep grabbing market share. economy was supercharged after COVID-19’s effects waned. In response to congestion and concerns over likely further disruption at west coast gateways, many shifted some imports from Asia to the east coast – only to find congestion there getting worse than on the Pacific coast. Contact us. The US West and East Coast ports saw a reduction in port congestion during January, The port congestion increase in Asia has been attributed to new Covid-19 outbreaks in the continent and specifically in China, At the end of January 2022, the port of LA was sitting with around 62,253 empty containers to be shipped out. ILA targets rail-mounted gantry cranes amid impasse in port labor talks; Broker automation vendor lands funding round in increasingly competitive market; Europe (Base port) US West Coast (Base port) US East Coast (Base port) Australia (Melbourne) South America (Santos) SCFI Deep Dive Key Trades 0 2,000 4,000 6,000 8,000 10,000 J F M A M J J A S O N D J F M A M J J A S O N Shanghai - Rotterdam Shanghai - Los Angeles Shanghai - New York WCI Deep Dive Key Trades Port congestion that has snarled supply chains for more than a year could soon get worse if negotiations for a new contract between West Coast port operators and dockworkers don’t go smoothly. 4% YoY increase). MTS Logistics. Smaller protests are also taking place at the Ports of Los Angeles and Long Beach. With a near-record 75 containerships waiting outside the U. By Augusta Saraiva (Bloomberg) — Employers at West Coast ports at the center of the U. Severe congestion is on the rise again at major gateways along the West Coast, and fears are mounting that terminals will soon run out of room to accommodate incoming cargos. 4%, respectively, this year through May 2022 versus the same period in 2021. Beyond the Docks. 2%, continuing to narrow the gap between the benchmark year (see Figure 4). west coast port congestion crisis is worsening. On May 4, 2022, the Southern California Marine Exchange (SCME) reported 89 total ships were in the ports of Los Angeles (LA) and Long Beach (LB). ” Writing for CNBC, Lori Ann LaRocco noted then that “rail congestion from Berkshire Hathaway subsidiary BNSF and Union Pacific, the railroads servicing the West Coast ports, is getting worse and slowing down container processing at the January saw a reduction in port congestion in the US West and East Coast ports as workers cleared a substantial backlog amid Covid-19 outbreaks among port workers according to a new report from supply chain visibility data firm, project44 citing publications Courthouse News and Savannah CEO. All eyes and attention are on the renewal status of this year’s master labor contract between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) set to expire on July 1, 2022. Twitter Facebook The increase in call sizes at ports and gradual shift to 24/7 operations with the threat of automated handling equipment are just a number of factors in the rising tensions between Congestion, Delays and Supply Chain Challenges Will Continue into 2022 (Port of Los Angeles and nearly 22 days on the worst-hit China to U. These numbers show that East/Gulf Coast ports were growing faster than West Coast ports pre-COVID; the West Coast jumped far ahead in the first half of last year, then fell back behind in the second half as congestion limited throughput; and East/Gulf Coast ports have widened their growth-pace lead in 2022. 5 days in January to 7. "The whole 3. Read more. That’s one of the takeaways from two recent analyses of transpacific freight movement, and In late 2022, the east coast port had a brief four-month stretch when it moved the most total TEUs of all U. Port Congestion and Supply Chain Disruption. 6% of inbound volume in the United States. The retail items we need in the Mid-Atlantic and northeast, there is no congestion. Rail cars piled up at West Coast ports, creating significant congestion that threatened to disrupt transport of critical commodities such as diesel and food. (Toshiya Abe, U. “the easing congestion at ports, East Coast ports currently handle 56. Overall congestion in North American ports has improved with around 900,000 teu of vessel capacity currently waiting at the main US and Canadian gateways, compared to a peak of over 1. West Coast port receiving specialized refrigerated cargo ships that carry Uncover the challenges posed by West Coast port congestion and the pressing need for robust rail support systems. Join The Club April 19, 2022. However, February imports to west coast ports increased by just 5. But the slowdown hasn't gone away: Capacity at East and Gulf Coast ports is now strained, likely impacting the national supply chain. The East Coast port congestion (Halifax, NS and Saint John, NB) is a direct result of vessel diversions due to the strike at the Port of Montreal, while certain West Coast ports like Prince Rupert have seen a record number of traffic for In some cases, companies may have increased inventory at U. 25m TEU in October, although the Port of Miami has yet to report final data. 4% above pre-Covid 2019 levels, while those to their west coast peers are down 9. Both the Port of Los Angeles and the Port of Long Beach reported lower cargo volumes in October compared to the same time last year. Almost 15,000 ILWU workers are employed at West Coast ports. And why freight surged is also no secret to anyone who pays attention: the consumer-driven U. warehouses or shifted (to the extent possible) to West Coast ports in anticipation his company’s analysis of historic congestion and strike data for U. Nearly two-thirds, or 64 percent, of import shipments arriving in the U. In a statement, it said that while there was "some easement" at Ports on the US West Coast have witnessed a considerable drop in import shipments over the past year. When container ships jumped from carrying 6,000 Twenty-foot Equivalent Units (TEU’s) to 10,000 or more TEU’s per vessel, Beneficial Cargo Owners The prime congestion “hotspots” right now are in the US, China and Northern Europe. . the ports of Los Angeles and Long Beach are ramping up to 24/7 operations to help ease the congestion that experts say could continue well Congestion at US West Coast ports hit the headlines last year as it reached record levels with vessels waiting more than three weeks to berth at the key ports of Los In November 2022, Rail delays involving Berkshire Hathaway's BNSF and Union Pacific are causing worsening container congestion at the nation's busiest ports. In the seven years since West Coast port workers have negotiated a full, fresh contract, the hardships of laboring through the COVID-19 pandemic, employers’ recent robust profits, and the rapid The potential for more congestion could still spook more importers into shifting their goods to the East and Gulf Coasts. 92 days of import container dwell time The data indicates a west coast decline of 7. Last Wednesday, maritime analytics firm MarineTraffic counted 18 Shifting cargo movement from West Coast ports to East and Gulf Coast ports, congestion, supply chain disruptions, and shipping trends for 2022. Global port congestion is set to continue until at least early 2023 and keep spot freight rates elevated, June 16, 2022 2:48 AM UTC Updated ago Containers are seen on a shipping dock, as GoComet’s port congestion data gives real-time visibility over port congestion that uses a combination of multiple sources such as AIS data, geofencing around ports and live container events data – collected from over 45000 containers tracked every month. 8 Persisting port congestion on the US west coast has caused trade flows to shift to the US Gulf and east coasts, especially to the Port of New York and New Jersey. e rest of this paper is organized as follows: "Literature review" section presents a review of the most relevant articles Our vessel-tracking data shows non-domestic arrivals to major ports on the US west coast fell approximately 5% during 2022. By. East Coast, the Port of Savannah reported heavy congestion, while the Port of New York-New Jersey reported slightly higher waiting times of 1. Register. 1% from May but increased 10. Of the 89 total ships, 32 are container ships including 3 at anchor or loitering and 29 at berth. As FreightWaves reports, “ The three terminals at the Port of Charleston — Wando Welch, North Charleston and Hugh K. AM port congestion down May 11, 2022. Still, that volume represented a 21. Ethan Huang - September 27, 2021. Congestion at US West Coast ports hit the headlines last year as it reached record levels with vessels waiting more than three weeks to berth at the key ports of Los Angeles and Long 2) Congestion at Ports. 4% compared to the same month last year. Compared to May 2024, imports from China remained flat in June 2024 but boasted 13. Marcus Hand | Jul 19, 2022 . " While the port has some busy days, Doyle said the port has never seen a backup like those the west coast have Analysis of 2022 results from US ports vividly demonstrates the plight of the West Coast, which for much of the year faced congestion problems. 2: Prepare for significant congestion at U. June 30, 2022. from Januar y 1st, 2019–February 10th, 2022 for the ports . Of the increase in Chinese imports in August 2022 versus July 2022, the Ports of Norfolk, Charleston and New York/New Jersey saw 32. Blume Global chief executive Pervinder Johar noted that Asian manufacturers are shipping goods to ports on the east rather than routing through west coast ports. West coast routes according to container Stronger volume growth for East Coast ports beginning in 3Q21 was the result of shippers rerouting some cargo from the West Coast ports to avoid congestion and adjusting ahead of contract negotiations. Novack 📧 (Thesis Supervisor) and Saurabh Bansal 📧 (Honors Advisor) (2024). Truck Movement Decrease, Dwell Time Increase West Coast ports will continue to face challenges into December, according to the recently released ITS Logistics US Port/Rail Ramp Freight Index. ports at record highs. 9% and 0. That was down 1. In the second half of 2020, the shift in consumer demand and reduction in containership capacity, as a consequence of the COVID-19 pandemic, contributed to the disruption of the global supply chains, especially on the US West Coast. While there are signs of improvements, data from research and analysis firm Sea Home Ag Industry Congestion at West Coast Ports Strains Tree Nut Shipments. West Coast, the vessel backups in the San Pedro Bay off the Ports of Los Angeles and Long Beach cleared in late 2022. This month, the US ports covered by Global Port Tracker handled 2. Future Market Share of Atlantic and Gulf Coast Ports May 2022 A new report by noted maritime economist John Martin, PhD. 1 Delays were longer and more persistent in some parts of the world than others. 10 The West Coast ports’ share of the total sank to 45%. , Dec. Although congestion has cleared along the West Coast, East and Gulf Coast ports are bearing the brunt. Status Of Port Congestion In The USA. Trigon West Coast Ports Face 2022 Labor Clash Amid Snarls. West Coast ports are celebrating their progress at reducing congestion and backlogs with the pendulum however swinging east where major ports are now By Charles Cote, supervised by Robert A. “Container traffic entering RENO, Nev. , businesses and consumers who rely on West Coast ports. By Patrick Burnson July 22, 2021. Growth was hampered due to congestion at inland ports that impacted operations and fluidity in Q2 and Q3. Our Authors. Avoiding ILWU Congestion Makes Second Half of 2022 East Coast Cargo Shift Likely. Other potential means of mediating the dispute, such as the intervention by Labor Secretary Julie Su during the 2022-2023 West Coast port strikes, which remain unaffected by the strike. The shift of volume away from the major West Coast ports reversed itself in March 2022. By Mike Wackett in Long Beach (The Loadstar) – Congestion has cleared up at the twin ports of Los Angeles and Long Beach, which together make up the busiest container-terminal complex in the United States. Gulf Coast, waiting times fell Even before today’s announcement that the PMA is to close US west coast terminals for four out of the next five days, the port of Oakland yesterday revealed it would take two months to clear the current cargo build-up. While lead times for shipments coming through the West Coast have been reduced, Dodd said congestion has started to build up at East Coast ports as more shipments from China end up there. The The effect of the West Coast port delays can be seen all over the shipping sector. ” West Coast port operations were disrupted for months when contract talks hit an impasse in 2014-2015, causing many shippers to divert to the East Coast wherever possible. This article provides an environmental view of acute maritime congestion in Los Angeles and Long Beach anchorage Cargo congestion on West Coast is a consequence of complex issues. Related content. The number of ships waiting off ports according to MarineTraffic/American Shipper increased overall by 22% to Longshoremen at the ports of Vancouver and Prince Rupert (West Coast Canada) went on strike Monday November 4, 2024 at 8AM Pacific Time. 3120. imports “since at least the early 1980s. The US West Coast ports, especially Los Angeles and Long Beach, faced severe congestion during 2021-2022. East and Gulf Coasts in an effort to avoid supply chain disruptions on the West Coast and to diversify their risk ahead of the upcoming labor negotiations, scheduled to begin on May 12. Levels of congestion have also risen at import destination ports, especially off the Californian ports of Long Beach and Los Angeles, as Containers waiting have continued to rise significantly since July 2021. In 2023, China exported goods worth $3. Congestion due to record-high container volumes in Southern California, coupled with Like other major disruptions such as the COVID-19 pandemic, 2021 Suez Canal blockage, and 2022 West Coast port congestion, Although many manufacturers that rely on the East and Gulf Coast ports are breathing a sigh of relief, as we look beyond the immediate crisis, Aiming to get around cargo bottlenecks at West Coast ports, Nippon Express has launched a multimodal service that will transport cargo from the U. Overall Annual Congestion. 2 Chinese export hubs such as Shanghai, Qingdao and Tianjin, were exceptionally congested, mainly The Port of Long Beach also had a banner month, with a total of 796,560 TEUs (a 3. May 13, 2022. and Canada to Asia via Mexico. In early July, rail congestion at some of the West Coast ports was so bad it was described as “reaching an inflection point. Nippon Express USA, Inc. Leatherman — handled 226,515 twenty-foot equivalent units in January, a 4. In the San Pedro Bay, container dwell times have increased from 3. Twitter. However, the east coast is also experiencing congestion problems. Yet over the long term, terminal capacity enhancements as well as increased rail and Supply chain disruptions in China, improving landside operations and the continuing coastal shift to the hitherto less-congested US east and Gulf coast ports are seen More than 80% of the port of New York and New Jersey’s growth in 2022 is estimated to be cargo diverted from the west coast. Exports. Shippers fearful of labor disruptions and port congestion diverted imports to ports like Houston and Savannah via Compared to the August 2022 high of 1,003,725 TEUs, June 2024 Chinese imports are down 11. By Port Technology Team. The Loadstar. 2% YoY increase) and imports of 390,335 TEUs (a 4. Cargo containers piled up at a marine terminal at the Port of Los Angeles in March 2022. Supply chain visibility platform FourKites said in April that 64 percent of import shipments arriving in the U. Total Views: 2664 . Container rates from China to US West Coast fall, but port congestion persists. Contract uncertainty at West Coast ports is having a long-term effect, experts say. But the expiration of about 15,000 West Coast . between April 1-11 entered the country via East Coast ports, compared to just 36 percent going through the West Coast, according to data from supply chain visibility platform provider Ocean rates out of Asia were stable last week but are likely to climb significantly on mid-month Peak Season Surcharge increases this week as demand remains strong and Red Sea-driven congestion persists in both the Western Mediterranean and the Far East. Share this article. "We currently see a lack That accolade passed in 2022 to New York. . A look back: Declining cargo import volumes through US West Coast ports — down 3. The Port of Vancouver’s Centerm container terminal. However, this shift is likely to lead to congestion and delays at these ports, as they may struggle to handle the increased volume. The rocky history between management and the stevedoring union has shippers buckling in for a stomach-churning year of late shipments, stockouts and soaring Cargo congestion clouds are lifting along the West Coast, but don’t expect clear skies anytime soon. 5m teu in February. 0. Eclipsed only by the pandemic-induced cargo surge in 2022, it was the sixth consecutive month of year-over-year increases and surpassed January 2023 by 18%. Bill Mongelluzzo, Senior Editor | Mar 31, 2022 1:57PM EDT. Prince Rupert is 1-2 days closer to Asia than any other West Coast port. With a potential strike at ports up and down the East Coast and along the Gulf Coast set to begin after midnight Monday, logistics executives tell CNBC the remaining hours are critical in moving West Coast Highlights. The pandemic plagued ports on the West Coast with congestion and equipment-related delays. 4% of the total while West Coast ports represented 45. Union Pacific has paused any containers leaving the inland port of Denver to the Union Pacific rail ramps for three terminals at the Port of Los Angeles. Vessel Congestion Update – LA/LB On February 16, 2022, the The severity of the U. "A West Coast labor strike could be the biggest issue for shipping this year," a That accolade passed in 2022 to New York. "We currently see a lack But there are opportunities to be creative with supply routes. BCP-compatible service designed to avoid port congestion on North America’s west coast. Rankings. Roadway truck congestion continues to affect Elizabeth port area but has eased in last few days due to resolution of some issues at APMT. Our vessel-tracking data shows non-domestic arrivals to major ports on the US west coast fell approximately 5% during 2022. The spike in dwell times in Atlanta of 54. Cargo flow to West Coast ports from Asia has slowed a lot since mid-2022 | Chung Chow East and Gulf Coast ports during the pandemic and port-congestion crises, total container moves through Charleston has edged up just 1. Record imports over the last several months at West Coast ports, driven by the recent East Coast and Gulf Coast strike diversions and ongoing Red Sea issues, are leading to congestion on the rails 3. However, US East Coast ports were not immune to the parallel problems of staff absences and household’s rising demand for goods. Jump to. Truck Movement Decrease, Dwell Time Increase could mean there are operational issues or labor shortages in the facilities. Shipping PMA Accuses ILWU of ‘New Tactics’ to Disrupt Operations at Port of Los Angeles and Long Beach. While we are seeing improvement in Southern [] Prior to the pandemic, it was rare for more than a few ships to wait off port. In Canada, we have been seeing increasing dwell times for the West and East Coast terminals mainly due to port congestion and railcar shortages. The number of ships waiting just outside the ports of LA and LB have been Rail congestion from Berkshire Hathaway subsidiary BNSF and Union Pacific, the railroads servicing the West Coast ports, is getting worse and slowing down container As the global economy recovers from the COVID-19 pandemic, the two major west coast ports in the United States, Port of Los Angeles and Port of Long Beach, have been Overall, U. Department of Transportation has convened an interagency working group, led by the Bureau of Transportation Statistics, to develop timely information on supply chain activity. 3% in February, compared with the same month of the year before, to 1,029,183 teu, they were skewed by the earlier timing of Chinese New Year. Gulf Coast. East Coast and West Coast port TEUs were up 9. g. FourKites found that shippers have started to favour ports along the US East Coast as strikes and port congestion have plagued West Coast ports – like Los Angeles, Long Beach, and Oakland. 2024 - The labor dispute affecting Canada's West Coast ports has been resolved, with workers scheduled to return to their duties on Thursday, November 14, 2024, at 4:30 PM PST. But while the ships stacking off the coast are very visible, most of the blame for the congestion lies outside the docks. U. Its naturally wide and protected shipping approaches make it possible to successfully berth in just two hours. 7% In the second half of 2020, the shift in consumer demand and reduction in containership capacity, as a consequence of the COVID-19 pandemic, contributed to the disruption of the global supply chains, especially on the US West Coast. According to the latest analysis from Sea-Intelligence, the Y/Y laden inbound growth for East Coast ports in Q3 2022 was between 4 per cent and 11 per cent, and the annualised Maersk has suspended her direct calls to Felixstowe on her AE7 service from Asia due to “exceptional waiting times” in the port, and this will continue until March 2022. Plagued by vessel bunching, terminal congestion, and equipment shortages for much of last year, North America’s West Coast ports are cautioned that these conditions are likely to persist well High import levels are driving the congestion. If you do redirect to West Coast ports in the future, you should expect significant congestion and delays, especially if any strikes or disruptions are industry-wide. Strong demand and high spot rates have some long-haul carriers adding transpacific and Asia – Europe services. menu. For the year 2022, the port of Charleston leads in export The number of ships waiting off ports according to MarineTraffic/American Shipper increased overall by 22% to 153 at the end of July 2022, but 62% of these were off East and Gulf Coast ports and only 38% off West Coast ports. “While the West Coast represented over two-thirds of Cargo containers piled up at a marine terminal at the Port of Los Angeles in March 2022. Cargo flow to West Coast ports from Asia has slowed a lot since mid-2022 Chung Chow, BIV Labour negotiations ‘wild card’ in West Coast congestion easing, February 10, 2022. Global supply chain problems look to set to worsen, a new report published on Tuesday said, as China's COVID-19 lockdowns, Russia's invasion of Ukraine and other strains cause even longer delays About 80% of January’s reported infections were at the U. S. According to John McCown, author of the Container Volume Observer, it’s the West Coast ports’ lowest share of U. Ongoing labor negotiations from the West Coast ports has led shippers to lean into less risky alternatives by moving cargo to the East or Gulf Coast. container import volume declined 2. ports, namely due to aftereffects West Coast port congestion that persisted throughout 2021 and 2022. West Coast ports . An academic view of a global economic crisis that occurred from 2020 through 2022, focused through the lens of the impact to ports on the West Coast of the United States of America, primarily those located in Los Angeles and Long Beach. Home News Container rates from China to US West Coast fall, but port congestion persists. Event Details. The East Coast port congestion (Halifax, NS and Saint John, NB) is a direct result of vessel diversions due to the strike at the Port of Montreal, while certain West Coast ports like Prince Rupert have seen a record number of traffic for The Port offers the shortest and fastest trade route from North America’s West Coast to markets in Asia and the Middle East. The International Longshore and Warehouse Union (ILWU) represents employees at 29 West Coast Ports in the states of Washington, Oregon, and California. importers continue to look East as lengthy port contract negotiations cast a shadow out West. Thus, vessels reaching the Port of Oakland or the ports in Los Angeles and Long Beach could now slow their advance to a speed that would match that date/time. ports concludes that every 24-hour shutdown of all East situation on the West Coast in 2022 and 2023 Dear Valued Client, As you know, shippers have been allotting more cargoes to the U. Photo by Roger Hoyles on Unsplash. Imports to the top East and Gulf coast ports totaled 1,187,095 TEUs last month, up on the US West Coast also exposed the vulnerability of the intermodal chain, where the congestion in ports was manifested with higher utilization of trucking services inland, contributing to the increase of overall emissions. 5%. Two US West Coast ports – Oakland and Long Beach – came in second and third respectively on our import dwell time list. 100 Best Companies; Acute port congestion and emissions exceedances as an impact of COVID-19 outcome: especially on the US West Coast. 4% jump in the number of inbound US West Coast Ports Congestion. Ports along the US West Coast say they are in a healthier position and will be able to control peak season imports. Beyond 150 NM*, approximately 45 vessels are steaming toward the twin ports. Departments of Agriculture, Energy, Commerce and Labor. Related news. Longshore contract talks affect West Coast volumes. Harbor Truckers Say West Coast Port Congestion Is Seroka on Friday said the number of aging containers sitting on the docks awaiting collection had dropped 60% since the port June 5, 2022. Port congestion under the COVID-19 pandemic: In the ports of Los Angeles and Long Beach on the west coast, According to the Clarkson Ocean Port Congestion Indices, the average port congestion index is 31. Helen Atkinson, Senior Editor. Wednesday, November 23, 2022. One main culprit of the congestion is that warehouses are filled. 2% Truck Movement Increase, Dwell Time Increase could mean the facilities are getting congested serving more than usual trucks. March 3, 2022. West coast routes according to container As congestion port on the West Coast fails to clear up, East Coast ports have been forced to pick up the slack, causing some to share concerns about US port congestion 2023. The queue of vessels waiting to unload goods at the Port of Los Angeles, North America’s busiest container port, has fallen 80% since the start of the year as global container prices continue to Ongoing rail congestion at West Coast ports has created an opportunity for East Coast ports, container shipping companies and rail operators to enter into new trade relationships. Meanwhile, only two U. 7%. e rest of this paper is organized as follows: "Literature review" section presents a review of the most relevant articles There has been a gradual build up of ships waiting at the Canadian west coast ports of Vancouver and Prince Rupert as the ILWU Canada impasse stretches into a second week, with the total capacity of ships at the Puget Sound/British Colombia anchorages hitting 113,500 teu as at 9 July - the highest level since October 2022 but still well below the peak of over 300,000 teu Plagued by vessel bunching, terminal congestion, and equipment shortages for much of last year, North America’s West Coast ports are cautioned that these conditions are likely to persist well into 2022 even if imports slow from the double-digit gains in 2021. This is cause for concern when 40% of containers from Asia come through California’s San Pedro Bay complex, which handles more containers per ship call than any other port complex in the world. The numbers were a drastic shift The Port offers the shortest and fastest trade route from North America’s West Coast to markets in Asia and the Middle East. Higher peak season surcharges are one risk Below is a deep dive on the most congested major ports of 2022, with congestion measured by a function of container dwell time. the entire supply chain have created the backlog of container vessels and marine terminals slowing trade at U. These two ports handle the bulk of cargo coming from China, so once the congestion starts it can very quickly get worse, says Janet Porter, Chair of the Lloyd's List Editorial Board. That’s a nine-point swing from February 2021, when the West Coast boasted a 54% share. ‘West Coast Port Congestion, 2022, LAX had dwell times of 4. Global port congestion has reached an 18 Rates from Asia and Singapore to the US East Coast are at their highest since September 2022, while rates into the US West Coast are the highest This means slower inland transit times for intermodal shippers from the West Coast, and could contribute to the increase in traffic to east coast ports as discussed in prior Flexport Research. , congestion in Southern A look back: Declining cargo import volumes through US West Coast ports — down 3. While North America West Coast port volumes have started to contract sharply in the third quarter of 2022, North America East Coast ports have stayed poised amid recent disruptions. Facebook. ports—Houston, Los Angeles-Long Beach Though the ports of Los Angeles and Long Beach are independent, the data set combines information on the two ports. 6 billion just to elevate East Coast ports by 6 feet to accommodate Nearly US$2 trillion a year is the national economic value of the US West Coast ports, but in the long run, their growth is threatened. 9 days, that number used be 13. The absences and infections come as the terminals work to reduce congestion that’s likely to persist through 2022. 2% from September but up In 2022, Boston Harbor saw 14 According to recent research, it would cost between $19. "A West Coast labor strike could be the biggest issue for shipping this year," a US importers must be feeling like they’re stuck in a game of ‘whack-a-mole’. 8% growth, respectively. West Coast ports. 9%, to 1,025,545 teu, emphasising the continued coastal shift of cargo. Both container rates and intermodal spot rates are expected to maintain peak levels into 2022. ports has fallen from a peak of 150 at the start of the year to 125, many more vessels are waiting at facilities on the East Coast, according to an article from Seatrade Maritime News which analyzed the recent McCown Report by Blue Alpha Capital. One of the contributory factors behind the disrupted transport chains was the unprecedented levels of congestion that afflicted major ports worldwide. 2276 info@universalcargo. Vessel wait times are up to 25 days, in part due to two cranes being down for maintenance. E. search. Oregon and Washington agricultural exporters have been confronting at West Coast ports since last fall. 24/10/2022. 0%. waywsxenrurrlgqbhvacmqqbrucgefuqdaqjhmkkqhcakatyl