LA·Long Beach Ports, Record High of 157 Vessels Waiting at Anchor
[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 crisis. The US has begun considering deploying military personnel.
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 record 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 US. 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 have worsened 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.
On the 2nd, containers unloaded at Long Beach Port are being moved to be loaded onto trucks. (Photo by WP)
To resolve the logistics crisis, the US government is considering deploying military personnel at the state government level. The Washington Post (WP) cited White House sources on the same day, reporting that members of Joe Biden’s economic team and Department of Transportation officials have begun reviewing plans to mobilize the National Guard for tasks such as loading and unloading export and import goods and ground transportation like truck driving.
Earlier, the White House held a countermeasure meeting last week and ordered 24-hour full operation of the ports of LA and Long Beach. However, White House officials acknowledged that such measures might not alleviate the logistics crisis ahead of the year-end peak 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’s tally, since August this year, more than 40 workplaces have gone on strike, spreading the labor market crisis across all industries. Commercial truck manufacturer Volvo, well-known cereal maker Kellogg, agricultural and construction heavy equipment company John Deere, and US medical equipment company Kaiser have all gone on strike 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 recession.
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