Tag Archives: container shipping

Congested Port of LA receiving empty containers from Gulf, Southeast

Everyone has something to report about the great supply chain disaster. In this case, empty containers moving from the Southeast ports to LA/Long Beach are going to cause problems there. You can read to find out about the problems. There’s no space for them.

Even with new rules to allow stacks of containers to be 6 high instead of 2 high, the problems won’t go away. Just making the rule does not get the terminal operators to do it. And as the article points out, higher stacks mean it’s harder to find and get to a specific container for a given truck or ship. That adds time to the transfers, and creates another source of delay.

Perhaps finally people will grasp that in the age of global shipping there must be a plan, at least countrywide, to integrate all the components of the system– full containers, berths, empty containers, yards, stacking space, ports, terminals, warehouses, drayage trucking, chassis, appointments.

More than that, the plan has to be followed!!

There’s little that state governors can do, even though Gavin Newsom in California is trying to find ways to help out by relieving some of the storage space problems. When the commerce is interstate, and indeed international, it’s bigger than just one bottleneck point.

Lori Ann LaRocco Monday, October 25, 2021

Exclusive: Congested Port of LA receiving empty containers from Gulf, Southeast – FreightWaves

Eric Kulisch, Air Cargo Editor Monday, October 25, 2021

City of Long Beach allows logistics companies to stack containers higher – FreightWaves

Major forwarder on how to reduce the bottlenecks at Long Beach

Ryan Petersen, CEO of Flexport, hired a boat to visit the Port of LA/Long Beach to see the traffic jam of ships and observe what the terminals are doing. He came away with numerous suggestions, some of which have appeared in the directive published yesterday by Governor Gavin Newsom.

Ryan is a keen observer of the shipping scene, in addition to being CEO of a fast-growing forwarder.

The problems he detects seem to be yard space for containers, and a shortage of chassis and places to put empty containers to get them off chassis.

The new policy will allow stacking up to six high instead of only two high. That will help out both port yards and inland yards, such as for rail. More land available for stacking will also help, if properties close to rail yards can be identified and assigned for stacking.

Apparently, because empty containers cannot be dropped off, chassis are standing around with empty containers on them, preventing their use for a full container newly unloaded from a ship. A shortage of chassis ready to take a loaded container thus occurs.

How come it is always chassis and empties that cause the problems in the container supply chain?

By Alex Lennane 25/10/2021

Major forwarder on how to reduce the bottlenecks at Long Beach – The Loadstar

Shadow inflation: Shipping costs are up way more than you think

This article gives lots of measures of factors contributing to supply chain cost. There are good graphs indicating the changes.

But these are contributing hidden costs to products, and those costs will be borne by consumers of the final products. That’s inflation.

It may be the first time that inflation is influenced by marine supply chain problems since the incessant wars on the seas in the 17th and 18th century. And in those days, frequent shooting wars guaranteed recessions; it was leisure goods like tea that had inflated prices. World Wars I and II also caused inflation, and shortages, but these were only partly caused by pillaging of marine traffic on the high seas. In most cases price controls were put into effect to resist inflation for ordinary people; and the extra goods were needed for the soldiers. We don’t have those now.

Somehow in the US and EU we need to find people to do the hard jobs in the supply chain to keep goods moving— warehouse jobs and driving jobs.

Greg Miller, Senior Editor Friday, October 22, 2021

Shadow inflation: Shipping costs are up way more than you think