7.8 C
Hamburg
Friday, January 24, 2025
Home Port News Port congestion chaos in California - Coming holiday season could be catastrophic

Port congestion chaos in California – Coming holiday season could be catastrophic

The congestion in California continues to challenge the major US ports in Los Angeles and Long Beach, as demand surges and retailers pile up stock ahead of the holiday season.

According to Container xChange’s CAx (container availability index) data, there is a 60% spike in the inbound outbound ratio at the ports of the US West Coast, surpassing the pre-pandemic levels.

This is indicating that “there is excessive stress on the ports, and therefore indicating further congestion is expected in the coming months as we approach the holiday season in the latter part of the year,” said Dr. Johannes Schlingmeier, Co-founder and CEO of Container xChange.

The all-time high in cargo congestion at the US West Coast ports is a result of the global supply chain disruption and its domino effect, according to Christian Roeloffs, co-founder and CEO of Container xChange, who noted, “the ever-higher imports owing to higher demand, grappling with the infrastructural and human resources struggles are further adding to the stratospheric congestion which is ultimately leading to further delay in vessel arrival.”

Roeloffs believes that it also indicates that in the coming months, which are the most crucial months for the industry, there will be higher demurrage and detention charges, higher spot rates and surcharges and intermodal delays before it finally settles.”

The following graph shows the year-on-year trend of the inbound vs outbound containers over the past three years:

Source: CAx

There is an average increase of 60% in the CAx values during the month of August 2021 as compared to the same time period in 2020, according to Container xChange report. This shows the inbound containers at the LA port have increased 60% from the last year during the same time last year.

CAx for the port of Los Angeles is at 0.88 and 0.90 for 20DC and 40DC respectively, where 0.50 is the balance of inbound and outbound containers and anything greater than 0.50 represents a surplus of containers at a port and vice versa. This is the highest CAx at the ports observed over the past 3 years.

Index values appended below for the port of Los Angeles

Container type Weeks 2019 2020 2021
20DC Week 35 0.80 0.55 0.88
40DC Week 35 0.78 0.50 0.90

Source: CAx

The data corroborates well to the coming Christmas season congestion chaos, according to Container xChange’s experts, who expect delays in shipments further beyond the holiday season as “the industry grapples with the bottlenecks of shipping logistics and container availability.”





Antonis Karamalegkos
Managing Editor

Latest Posts

Japan-US container trade grows in 2024

Container movements from Japan to the United States reached a total of 643,433 TEUs in 2024, marking a 5.7% increase compared to the previous...

Strategic and Geopolitical Implications of Taiwan Strait: Comparative Analysis of G7 and BRICS Dependencies

The Taiwan Strait serves as a crucial maritime corridor, linking major East Asian economies with the global market. This route's strategic value is highlighted by...

Container Shipping Stocks: Weekly Performance Overview

Container shipping has long been a critical pillar of global trade, facilitating the transport of goods across continents and powering economies. In the past...

Marfret receives 300 new reefer containers

Marfret has recently purchased 300 new refrigerated containers, which will primarily support exporters from Latin America in shipping tropical fruits, particularly those harvested in...

Vietnam approves Can Gio transshipment port project

The Vietnamese government has given the green light to the “investment policy” for the Can Gio International Transshipment Port Project in Cai Mep. This is...
error: Content is protected !!