Global shipping and supply chains keep breaking down
Tom KirkmanIndependent Project Manager
Shipping and supply chains globally continue to break down.
High energy costs and roaring inflation coupled with recession are distinct factors.
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“September is usually a strong month for West Coast imports as U.S. companies bring in their year-end holiday goods. Not so in 2022.
On Wednesday, the Port of Los Angeles reported its lowest import total for September since 2009, amid the Great Recession. The day before, the neighboring Port of Long Beach posted its weakest import total for September since 2016.
Imports to Southern California ports are falling fast because shippers have shifted volumes to East and Gulf coast ports, fearing disruptions from West Coast port labor negotiations.
● Simultaneously, volumes are now pulling back nationwide due to falling demand.
… The focus during the supply chain crisis was on the massive number of container ships at anchorages or loitering offshore as they waited for berths in Los Angeles or Long Beach. Statistics from the Marine Exchange of Southern California show a steep drop throughout this year, from a high of 109 waiting container ships Jan. 9 to just four on Wednesday, the lowest number since October 2020.
The Marine Exchange also collects data on the number of container ships at the berths in the two ports. This data also shows a major — and more recent — change.
As the supply crisis intensified, there were often over 30 ships at the two ports’ berths each day. Between August 2021 and February 2022, there were an average of 28.8 container vessels alongside in Los Angeles and Long Beach daily.
In recent weeks, however, the numbers have sunk to much lower levels. The average from Sept. 1 through Tuesday was 19 ships alongside, down over 30% from peak levels.
There were 18 ships at the ports’ berths Tuesday. There were only 10 ships alongside on Sept. 12.