Port of Long Beach News
Updated July 25, 2022
Here’s the latest on what’s going on at Long Beach:
Conditions at LA/Long Beach have improved over the past few months, but congestion in other parts of the country, including east coast ports, is worsening.
Congestion is caused not just by a shortage of berths, but also by overcrowded container yards and backups on rail. In addition, many businesses have been facing excess inventory due to changing consumer spending trends, which exacerbates the backlog due to a shortage of space for incoming shipments.
Port of Long Beach congestion
Backed-up ports have become a major factor in the supply chain crisis. The problem is especially pronounced at the Port of Long Beach, one of the busiest ports in the US.
Why are the ports causing so much delay?
Watch this short video to learn:
- Why adding more vessels doesn’t solve the capacity crunch
- Why loading and unloading are key factors in shipping time
- Why getting stuck at the port is so expensive
What Causes Port Congestion?
Want a quick summary? Read on:
Port of Long Beach delays
Everyone is talking about port delays. Here’s what’s really happening.
The ports of Los Angeles and Long Beach are filled to capacity with ships – without the resources to unload and reload all the ships that are waiting.
That means moving containers out of the port is taking too long.
Many vessels are anchored for two weeks waiting to be unloaded. Two weeks is about the time is takes to sail back to China, so this essentially means the ship is missing the next trip out. And if this ship gets held up again in China, it has now missed two potential voyages.
Port delays mean less capacity for goods
When ships get held up, it means lower capacity.
And lower capacity means higher prices.
With ships that carry such a high quantity of goods, sometimes a day’s delay can mean a loss of half a million dollars. And that cost gets passed on to importers and exporters.