More than 100 ships are waiting to unload containers outside the ports of Los Angeles and Long Beach. Such cargo ship gridlock, as tracked by the Marine Exchange of Southern California, was unheard of before the . According to the latest express fromZheng Zhenmao, the chairman ofYang Ming Marine Transport Corporation, he is optimistic about the performance of the container shipping market in 2022. A record number of cargo ships have been stuck in limbo off the southern California coast waiting for entry to either the Ports of Los Angeles or Long Beach. Some 65 cargo ships have been forced to queue outside two of America's biggest ports, in the latest sign of supply chain disruption hitting the US. In the United States, the trucking industry represents 71 percent of transported goods. The epic container ship traffic jam that was once a highly visible symbol of the supply chain crisis has now almost vanished. There were 20,710 rail-bound containers that had been waiting nine or more days. It forecasts that Maersks 2022 EBITDA will be $34.6 billion, up 43% from 2021, and that Hapag-Lloyds 2022 EBITDA will be $20.4 billion, up 56% from last year. This is different, this is an unrelenting flow of cargo, Chase told the audience at the event, sponsored by the Coalition of New England Companies for Trade. Thread starter Satanica; Start date . But when volumes moved away from the West Coast, queues started to grow on the East and Gulf coasts. The queue first began to climb in October 2020. They could take possession of it much faster than any other country, allowing them to mount a strong recovery. Asof Sept. 21, there were 132 cargo ships atthe ports of Los Angeles and Long Beach. Ship Report 11/3: 159 total ships inport LA/LB including 101 at anchor or loitering & 58 at berths. Inbound arrivals could soon increase, according to Sea-Intelligence. Press Esc to cancel. The drivers who are not firedsometimes end up owing money to their employers and are unable to get out from under the debt. A truck passes a container ship at the Port of Oakland on Tuesday, Oct. 19, 2021, in Oakland, Calif. California farmers say they are having trouble exporting their crops because of delays in the global supply chain. [But] forward market sentiment, rather than carrying down any further significant price decreases, has flattened out the curve.. Container ships haverecently blocked the Suez Canal. When Shanghai reopens, the rebound will cause a surge in ocean volumes that will likely increase congestion, delays, and ocean rates. In late February, ship-position data from MarineTraffic showed 70 container ships waiting offshore of East and Gulf Coast ports. While there has been a record-breaking number of ships at anchor in California waiting to unload their cargo, most of the vessels in this Facebook image are actually moving. Now, they email before leaving China and other far-flung destinations because some would rather wait for a few weeks off Cabo San Lucas than Orange County. googletag.pubads().enableSingleRequest(); Container ships are waiting an average of 18 days to unload at the Port of Los Angeles, the busiest of the neighboring gateways. Salvatore Mercogliano, an associate professor of history at Campbell University in North Carolina and adjunct professor at the U.S. Booming demand for consumer and goods, labor shortages, bad weather, and an array of COVID-related supply chain snarls are contributing to backlogs of cargo ships at ports around the world. According to logistics experts, the current backlog of containers stemming from an historic import surge in the United States will take until mid-2022 to clear out. But they have been pushed further and further away from shore, and now, only those cleared to dock within 72 hours are permitted within 50 miles, said Capt. The country's busiest port complex of Los Angeles and Long Beach is facing crippling delays, with . The amount of ships waiting to unload goods seems to be increasing. We now have them 150 miles offshore of Southern California. Marine Exchange of Southern California,accessed Sept. 21. The practice cuts fuel consumption and carbon emissions. googletag.cmd.push(function() { Daniel Richards, associate director at Maritime Strategies International (MSI), wrote in an annual outlookpublished by TradeWinds: If, ultimately, markets do not fall meaningfully once it becomes implausible to blame congestion and Covid-19 we will readily attribute greater weight to a changed industry structure, as likely will regulators [but] it is still too soon to tell if the industry is permanently transformed., The big wild cards for 2022: COVID, port labour negotiations and the Taiwan gray swan.. "This are(sic)cargo ships off the coast of California. vice president of operations at Sea-Intelligence. Copyright 2023, All Rights Reserved, FreightWaves, Inc, Only 8 ships waiting off Southern California but 41 off Savannah, Loaded & Rolling (Enterprise Fleet News/Analysis). The Evergreen cargo ship 'Ever Liberal' filled with containers is seen at the Port of Los Angeles on October 6, 2021 in San Pedro, California. The number of cargo ships docked off the Los Angeles coast is still at an all-time high - contradicting claims from port officials that the number of boats has dwindled in recent weeks. We certainly hope things do not escalate in the Formosa Strait, but it would not be a complete black swan event at this point.. Sixty-one vessels were anchored offshore on Thursday waiting to unload cargo at the Port of Los Angeles . Slower handling and stricter customs rules caused a lot of congestion in the ports. Then, last year, the Navy conducted battle exercises with a fleet of unmanned ships, submarines, and aircraft. Chart: US Shippers Based on Southern California Ocean Exchange Data. As two ports in California work around the clock to alleviate the backlog of cargo ships waiting to unload, some . As CBS Los Angeles recently reported, there are approximately half a million shipping containers on ships at anchor off the California . As of Wednesday, there were 28 ships waiting. Analysts at Citi Research noted in a Feb. 9 report that ocean carriers canceled 14% of sailings for February, up from 8% for the same month last year. The container shortage is exacerbated by a decrease in air and land transport. In California, there have been record-breaking queues of container ships outside major ports. Thats well below highs seen in July and October 2021 but still above levels recorded in the first quarter. Prior to the COVID-19 pandemic, it was unusual for more than one ship to wait to dock and unload. We understand the number of container ships at anchor on the coast should be zero.. According to Judah Levine, head of research at Freightos, There is no strong expectation of significant improvements [for cargo shippers] until underlying demand wanes. window.googletag = window.googletag || {cmd: []}; Louttit provided a map of incoming ships, with a huge cluster off the coast of Mexico. Any overt military action on the part of the Chinese would be very bad for all things shipping, as it would likely lead to sanctions and a reduction of the flow of goods. Yet even East Coast ports are down from peaks. beyondthemagazine.com, WHY IS THERE A SHORTAGE OF SHIPPING CONTAINERS IN 2022? By Miles Austine; freightwaves.com, Container shippings 2022 outlook: The bulls, bears and wild cards: This year could be even more lucrative for shipping lines than 2021. By Greg Miller; freshfruitportal.com, California port backlog will not clear until well into 2022, experts say.; wsj.com, Ship Backup at Southern California Ports Is Receding: The number of ships waiting to unload at the ports of Los Angeles and Long Beach fell this week to the lowest level since November but remains extensive. By Paul Berger; freightos.com, Shipping & Freight Cost Increases, Freight Capacity, and Shipping Container Shortage [2022].; ibbusinessjournal.com, Fewer container ships are idling directly off the San Pedro Bay coast, but the port backlog persists farther out at sea. By Brandon Richardson; freightwaves.com, Ports get much needed respite as container-ship traffic jam eases: Ship queues down off Southern California, Virginia and Charleston. By Greg Miller; Begin typing your search above and press return to search. Turning long trains at a triangular junction allows them to be redirected in a different direction without the need for an additional locomotive to be attached to the rear of the train. ABC7 Eyewitness News Watch Now The lockdown in Shanghai led tocancellation of flights and reduction in capacity, however with manufacturing shut down,demand for air cargo plummeted thereby counteracting the spike in air cargo pricing. }); And then there were eight. On Thursday, Wang Ming, Chinas foreign minister, warned that Americas encouragement of Taiwans independence forces not only puts Taiwan into an extremely dangerous situation but also exposes the United States to an unbearable price., According to Nolan of Stifel, I hate to even open the door to this Pandoras box, but clearly the Chinese have coveted the island of Taiwan for years and tension has been rising. Or it could be the final unwinding of COVID-era congestion as inflation takes hold. The station will also feature state-of-the-art equipment and facilities to support the firefighters and crew members who operate the vessel. pic.twitter.com/B2YKuu4cfW, Marine Exchange (@MXSOCAL) November 3, 2021. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot2', [[468, 60], [728, 90], [300, 100], [320, 50]], 'div-gpt-ad-1665767472470-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); For a complex . What happens next is still highly uncertain. This resulted in a significant backlog of unreturned storage containers. No one is taking a victory lap, said Gene Seroka, executive director of the Port of Los Angeles. By mid-May, the count had fallen to 45. Meanwhile, Chinas Yantian port in Shenzhen has more than 67 container ships waiting, partly because tropical cyclone Kompasu caused the port to temporarily close. Hanjin Ships, Cargo And Sailors Stranded At Sea. LOS ANGELES Cargo ships waiting to unload amid a supply chain crisis have been pushed even farther out to sea, this time to avoid missile blasts from U.S. Navy training exercises along the Southern California coast. Alex Murdaugh Receives Life Sentence: What Happens Now? But there are at least six big known unknowns: The bullish view on rates is that volumes will continue to be very high this month, prior to the Lunar New Year holiday. Although the ship backup is the smallest it has been since Nov. 11, congestion remains severe by historical standards. Despite efforts to clear out the landside of the U.S.s busiest import gateway, the ports face a major challenge on the waterside with unloading, trucking, and railing out cargo from over 100 container ships that were scheduled to arrive through mid-December but are queueing in some cases more than 150 miles off the coast,JOCreports. We'll never spam you and you can always easily unsubscribe. Reuters, October 7: "More than 60 container ships carrying clothing, furniture and electronics worth billions of dollars are stuck outside Los Angeles and Long Beach terminals, waiting to unload . Wait times For unloading are stretching as long as three . The number of ships waiting was down from a record-high of 73 on September 19, 2021. The current project involves the construction of new tracks and enhancements to a triangular rail junction, which will enable long trains to be turned and staged more efficiently. Deutsche Bank predicts the two carriers average freight rates will be up 30% this year versus 2021. There were 101 container ships waiting for berths in Los Angeles/Long Beach on Sunday, very close to the peak. OAKLAND, CA.