LA·Long Beach Ports, 62% Increase in Ships Waiting to Dock in One Month
[Asia Economy Reporter Yujin Cho] The US logistics crisis shows no signs of easing as labor shortages caused by COVID-19 are compounded by supply chain disruptions. At two major ports on the US West Coast, the number of ships waiting to dock has reached an all-time high, intensifying the logistics chaos.
On the 19th (local time), US economic media Fox Business reported that 157 cargo ships were waiting to enter the ports of Los Angeles (LA) and Long Beach as of the previous day. This marks an approximately 62% increase compared to the previous record of 97 ships (as of September 19), setting a new all-time high since the logistics crisis began.
Chip Rupit, director of the Southern California Marine Exchange, said, "Before the COVID-19 pandemic, the number of ships anchored and waiting around the two ports never exceeded 17."
The two major West Coast ports, LA and Long Beach, handle one-third of the container ship unloading operations arriving from Asia to the United States. These ports are experiencing severe congestion resembling a battlefield due to the global supply chain disruptions triggered by the COVID-19 pandemic, combined with increased import and export cargo ahead of the year-end shopping season.
To make matters worse, bottlenecks are worsening due to a shortage of truck drivers and other land transportation labor shortages, making resolution of the situation seem distant.
Gene Seroka, director of the Port of LA, reported that there are as many as 200,000 container boxes waiting to be unloaded. By the 21st, 45 ships are expected to arrive at the ports of LA and Long Beach, pushing the number of waiting ships beyond 200.
The logistics crisis is affecting not only the US West Coast but also East Coast ports. Fox Business reported that about 20 cargo ships are waiting to enter the port of Savannah, Georgia.
To resolve the logistics crisis, the US government held a strategy meeting at the White House last week and ordered the ports of LA and Long Beach to operate 24 hours a day, but full normalization remains a steep challenge.
White House officials acknowledged that such measures might not alleviate the logistics crisis ahead of the peak year-end shopping season, including Black Friday, according to foreign media reports.
Currently, global supply lines for virtually all manufactured goods?from food to diapers to fashion products?are blocked. Foreign media warn that if retailers like Macy’s department store cannot stock sufficient inventory, it could be fatal to fourth-quarter earnings.
US economist David Blanchflower warned that the labor shortage crisis caused by the COVID-19 pandemic has worsened drastically over the past two months, potentially pushing the US economy into another recession.
According to Bloomberg News, more than 40 workplaces have gone on strike since August this year, spreading the labor market crisis across all industries. Companies such as Volvo, well-known cereal manufacturer Kellogg’s, agricultural and construction heavy equipment maker John Deere, and US medical equipment company Kaiser have initiated strikes due to failed wage negotiations and other reasons.
This large-scale strike movement is raising concerns that worsening supply shortages, declining corporate profits, and delayed economic recovery from COVID-19 could lead to another economic downturn.
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