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International Watch: Fleeing Los Angeles, More Containers Stranded In America

2021/12/28 7:34:00 0

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The Los Angeles / Long Beach Port Authority announced that it would once again postpone the collection of container long-term detention charges until December 27. This is the sixth time that the port authority has delayed the charge, indicating that the incentives are helping to reduce the port container backlog.
However, the port of Los Angeles has raised concerns about the toll of empty containers blocking the terminal.

Nearly 70000 empty containers stranded at the wharf
Gene seroka, executive director of the port of Los Angeles, said last week that 60% of empty containers stayed at the Los Angeles terminal for nine days or more, resulting in a backlog of nearly 71000 empty containers.

"We are asking liner shipping companies to bring in more and larger sweepers to clean up these empty containers." "We will look for alternatives, including a charge to the liner companies that have long held empty containers at our shipping terminals," he said
The number of empty containers in the port has been steadily increasing, resulting in the congestion of the terminal yard. At the end of November, it was 11% higher than a year ago.
The Port Authority said the introduction of long-term container detention charges has greatly reduced the number of long-term containers stranded at the Los Angeles / Long Beach port.
Since the announcement of the charging plan, the total number of containers has decreased by 46%. In view of these improvements, they have been deferring charges.
But the port of Los Angeles is considering charging for the empty containers in the port. Apart from a brief respite during the Lunar New Year holiday, the pressure on the port is not expected to ease in a few months.
Fleeing Los Angeles more container business to the East Coast
According to statistics, the import data of the United States in November showed that the container import of the main ports on the west coast of the United States decreased by 7.5% year on year. In contrast, imports from ports on the east coast of the United States and the Gulf Coast increased by 9.9%.
Shippers and carriers are indeed avoiding Los Angeles / Long Beach, given the warehousing and transshipment capabilities of ports in Southern California.
In the ongoing Asian import battle between the west coast and the east coast, momentum has again shifted to the eastern ports.

In the latest issue of McCown container volume observer, consultant John McCown wrote: "the performance of West Coast and East Coast / Gulf Coast ports is increasingly divergent, and November is the sixth consecutive month, and the latter performs significantly better."
On questions about port rotation and the possibility of avoiding Los Angeles / Long Beach congestion, he said: "I can't name a specific company, but I can tell you that a company with large facilities on the west coast, usually attached to Los Angeles / Long Beach port, has now moved to Houston and has established a transit center there."

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