Hear a snippet, above, and get the full program by going to RoadSigns.TTNews.com. The congestion at the ports of Los Angeles and Long Beach has resulted in longer lead times in shippers' supply chains, as ships sit at anchor longer and containers remain at terminals for days. The ports of Los Angeles and Long Beach have been overburdened with a deluge of container imports over the last few months. Meanwhile, the National Retail Federation said March 8 that imports will surge on both coasts, causing more backlogs as the U.S. economy is expected to improve. “On average, in the coming months, we will be incurring a transportation and delivery cost that is over 10 times our usual cost per bike and tread, including, in many cases, shipping them by air instead of by sea,” Foley said. The congestion at … FMC Vaccination Letter to Biden by Transport Topics on Scribd. At San Pedro Bay, the entrance to the ports of Los Angeles and Long Beach, 46 cargo ships were waiting to enter the facilities March 8. The Port of Los Angeles Media Relations Division serves as the primary hub for news and updates from the Port of Los Angeles, Los Angeles Harbor Commission and Los Angeles Port Police. Cargo-ship congestion at California ports and those located around the United States is at some of the highest levels in years due to supply-chain disruptions caused by the COVID-19 pandemic. The Port of Los Angeles handled 889,746 TEUs in the same month, a 22% jump from a year earlier. PORT OF LOS ANGELES BREAKS GROUND ON $137.7 MILLION RAILYARD THAT WILL INCREASE ON-DOCK RAIL EFFICIENCY, REDUCE CONGESTION AND IMPROVE ENVIRONMENT: ... Includes all news stories from the Port of Los Angeles, covering a range of topics, including business, cargo, community, environment, public safety, and LA Waterfront. “How long do the restrictions on operations and the social distancing last? © 2021 Transport Topics All rights reserved. But long delays at the nation’s ports to get items shipped and unloaded are causing Peloton and other companies to rethink their long-term strategies about where its equipment is manufactured and how products get to customers. In this conversation with SupplyChainBrain Editor-in-Chief Bob Bowman, Jason Totah, president of Odyssey International Services, Inc., discusses alternatives to bringing cargo through overtaxed West Coast ports. This unfortunately has a negative impact not only the affected ports, but also U.S. rail and intermodal trucking networks nationwide. Some ports have indeed made efforts to improve visibility, such as the Port of Los Angeles with its ‘The Signal’ tool. [Stay on top of transportation news: Get TTNews in your inbox.] Los Angeles/Long Beach Port Congestion The ports of Los Angeles/Long Beach are experiencing severe congestion and causing delays. In part because of shipping concerns, Peloton in late 2020 purchased Precor, a gym-equipment manufacturer, and added 650,000 square feet of manufacturing space at locations in Whitsett, N.C., and Woodinville, Wash. “You may have read about the port congestion in Los Angeles and Long Beach, where shipping container volume has doubled in the last 12 months,” Peloton CEO John Foley said in a Feb. 4 letter to shareholders. “The workforce itself has been stressed, whether it’s the dray truck drivers or the longshore workers or all the others in the supply chain. Supply chain and logistics news. 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Find out as the RoadSigns Team speaks with Tom DiSalvi, VP of safety at Schneider National, and Charlie Mohn, director of product innovation at Drivewyze. Port Congestion Is … … Still, many reported record container volume in the last quarter of 2020 and the first months of this year. FourKites data also showed above-average berth times at the Port of Los Angeles. Los Angeles Port Congestion Lingers, Slowing U.S.-Asia Trade ... latest news and analysis on the pandemic. They’ve all been whipsawed,” he said. Ocean Network Express or ONE has also seen vessel delays causing major congestion at its terminal. Port workers took time off on Election Day, which adversely affected the conditions at the port. Most of Peloton’s equipment is built in Taiwan and shipped on conventional sea routes to distribution centers worldwide. Dive Brief: Rates on multiple ocean shipping lanes have swelled in the first month of 2021 and the Drewry World Container index has hit its highest point since 2011 at $5,340.30 per 40-foot container. The ports of Los Angeles and Long Beach are currently experiencing severe congestion, with a heavy backup of containers waiting to unload import cargo from Asia. Congestion at international ports is the “most important” factor behind constrained container recycling rates, argues shipping analysts at Drewry. "This is a massive economic generator," said Weston LaBar, CEO of … “The global increase in shipping traffic has added significant delays to all sorts of goods coming into U.S. ports, including Peloton products. The number of container ships … The ports of Los Angeles and Long Beach are experiencing severe congestion that could pose major problems for shoe brands and retailers. The number of container ships waiting to … “We must vaccinate all of our port workers as quickly as possible. (Getty Images), $202,000 Towing Bill a Textbook Example of a Scam, Port Officials, Retailers See Congestion Lasting for Months, US Lawmakers Introduce ‘Complete Streets’ Bill, Oshkosh Acknowledged Weakness on EVs Before Win in Postal Deal, Biden Executive Order Calls on Agencies to Prioritize 'Environmental Justice'. But historic import volumes, COVID-19 safety concerns, equipment availability, and many other factors continue to bog down port operations. Peloton’s concerns about shipping backlogs are not unusual. The port’s Executive Director Gene Seroka estimates that it would take a month to clear just the tens of ships already anchored and waiting in the bay. Vessel reliability status is also falling, and it has a lot to do with congestion at Asian ports. https://t.co/DIw3KQJ8uT, “It’s pretty heavy. The company took the unusual step of shipping some equipment by air cargo, but Foley says the costs impact Peloton’s bottom line. The carrier reported “heavy congestion” in Canada and “berth congestion at Maher Terminal and APM Terminals [in the Port of New York and New Jersey] impacting all services with delays of several days being experienced upon arrival.” Little relief ahead As a result, cargo heading into and out of the ports has slowed to a relative crawl, as the ports deal with record-breaking volume alongside a reduction in staff related to the COVID-19 pandemic. Port leadership, industry experts and government officials are becoming increasingly concerned the huge facilities are likely to remain extremely congested for the next six months. As recently as March 1, 10% of the skilled longshoremen at the Port of Los Angeles — about 800 workers —were unavailable. Volume at Port of Los Angeles is expected to be up more than 80% YoY between Jan. 17 and Jan. 23, and up nearly 148% YoY between Jan. 24 and Jan. 30. Congestion in Los Angeles-Long Beach has stabilized at an elevated level, but how long the congestion continues will depend largely on import volumes between now and the beginning of the peak season in August. Factors include a flood of products from Southeast Asian factories, a percentage of longshoremen being off the job because of COVID-19 and a shortage of warehouse space nationwide, especially near ports. Congestion is not as severe at East Coast facilities. Seroka said more longshoremen are returning to work after being vaccinated, quarantined or declared virus-free or contracting COVID-19 and recovering. “These unpredictable delays have resulted in painful delivery reschedules for many people as Peloton bikes, treads and accessories have been held at port for upwards of five times longer than usual.”. Fleets are investing in tech-based safety tools that inform and forewarn potential risk. In a webinar on 9 February, John Fossey, Senior Analyst on Container Equipment at Drewry, said containers are just not getting to delivery points in a timely manner, highlighting issues in Europe and North America constraining container availability. The combination of a record number of containers arriving at the Port of Los Angeles and Covid-19 is slowing down imports to the U.S. The Port of Los Angeles is the largest container port in the United States, measured by container volume and cargo value. “The supply chain slowdown we usually see after the holiday season never really happened this winter, and imports are already starting to grow again.”, National Retail Federation Vice President Jonathan Gold. Port of Los Angeles officials confirmed that 800, or 10%, of registered or regular workers were out last week. That could be quite a while.”. New normal in LA-LB means port congestion at least until summer Bill Mongelluzzo, Senior Editor | Mar 11, 2021 10:08AM EST Congestion in Los Angeles-Long Beach has stabilized at an elevated level, but how long the congestion continues will depend largely on import volumes between now and the beginning of the peak season in August. According to port of Los Angeles Signal port optimiser data, the average time ships are waiting at an anchorage for a berth is now almost eight days, with for instance, the 9,400 teu CMA CGM Elbe recorded as being at anchor for 12 days. With both ports combined, the San Pedro Bay Port Complex is the ninth largest port in the world. On March 8, Federal Maritime Commission members Daniel Maffei and Carl Bentzel wrote the eight Great Lakes states’ governors urging them to give COVID-19 vaccine priority to maritime workers. “When a container is waiting at a warehouse, it’s now sitting for about eight days. Federal Maritime Commissioner Carl Bentzel said he supports opening a fact-finding investigation into the two Southern California ports’ ongoing congestion issues. During the COVID-19 pandemic, sales of Peloton exercise bikes and other equipment have surged as the New York City-based exercise company saw its membership subscriptions reach more than 3.1 million, more than double the number of subscriptions compared with 2019, as people have avoided their local gyms and turned to exercising at home. In an attempt to avoid these issues and keep supply chains flowing, shippers are examining calling at ports without congestion issues. After thirty days, you will receive 3 pieces of content and after sixty days you will receive 1 piece of content. The cargo surge that exploded in the last several months of 2020 at the Ports of Los Angeles and Long Beach has continued into the new year, … The pool of dockworkers is made up … Listen to today's daily briefing below or go here for more info: 950 N Glebe Road Suite 210, Arlington, VA 22203, A view of Port Los Angeles from the San Pedro section of the facility. As 2021 arrived, many in the logistics industry hoped for a congestion reprieve. In late January, they sent a similar letter to President Joe Biden urging longshoremen to get shots as soon as possible because of the vital role they have in moving cargo. There are about 100,000 people who work at this port complex every day, and we have a lot of people we have to maintain health and safety to keep the economy running.”. Register with JOC.com and receive 5 free pieces of content for the first thirty days. Congestion woes are now spreading well beyond California ports, confirmed Hapag-Lloyd. IHS Markit Transportation Economist Paul Bingham told TT that delays would continue until more workers are vaccinated. If we stopped bringing in cargo right now, we’d have a month’s worth of work ahead of us,” Port of Los Angeles Executive Director Gene Seroka told Transport Topics. The Port of Los Angeles is turning the page for a new year. The latest information shows 8-10 vessels currently at anchor waiting berth space. “NRF is forecasting what could turn out to be record retail sales growth in 2021, and retailers are importing huge amounts of merchandise to meet the demand,” said Jonathan Gold, NRF vice president for supply chain and customs policy. But how do they condition and prepare drivers to respond to safety alerts? The port processed cargo from 88 vessels, nine of which were unscheduled sailings. [Stay on top of transportation news: Get TTNews in your inbox.]. “You may have read about the port congestion in Los Angeles and Long Beach, where shipping container volume has doubled in the last 12 months,” Peloton CEO John Foley said in a … Want more news? And the high volume levels are expected to continue, according to Port of Los Angeles' forecast, confirming Hapag-Lloyd's expectation of continued congestion through February. And that’s usually three and a half days during pre-pandemic times,” Port of Los Angeles Executive Director Gene Seroka said. Several companies, including athletic shoe retailer Foot Locker and Overstock.com, are rerouting cargo to other ports, including Seattle and Oakland, and away from Southern California because of the backlog. Moreover, when vessels do get a berth, operations are hit by congestion on the terminals. "Congestion is getting critical in [Los Angeles and Long Beach] ports," Jason Flores, vice president of ocean product, marketing and development at Air Tiger Express, wrote in a post, adding that vessels face at least a week delay getting into the ports. The port's seven container terminals are served by BNSF Railway and Union Pacific Railroad.Jointly, with neighboring Port of Long Beach, its facilities comprise the leading gateway for U.S. export/import shipments with China/Hong Kong, Japan, Vietnam, and Taiwan. To receive full access, Subscribe Today. The ports of Los Angeles and Long Beach are currently experiencing severe congestion, which has been exasperated over the past two weeks. But despite optimistic goals, challenging circumstances remain. Container and chassis congestion at the Port of Los Angeles is so severe that it was about 10 minutes into a press conference Wednesday before Executive Director Gene Seroka got around to announcing an all-time monthly volume record at the port. The Los Angeles port is expecting to handle 155,000 inbound containers next week, 80% more compared to a year earlier Visit Business Insider's homepage for more stories. Port Congestion in Los Angeles Drags On, Bogging Down Imports ... latest news and analysis on the pandemic. You can also subscribe to our daily newsletter. Ship congestion around the ports of Los Angeles and Long Beach hit an unprecedented …
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