- cargo piles up as California ports jostle over how to resolve delays
- more than 60 ships are lined up to dock, with waiting times stretching to three weeks
- participants in each link in the U.S. chain struggling with a shortage of workers
- the pileup of containers first to be fetched out of the port, so there is space to unload more from ships
- the terminal operators have been underutilizing their option to hire workers for the third shift
U.S. shipping operations remain clogged as ports, truckers, and warehouses can’t find enough workers or agree on 24/7 operations. Despite mounting shipping delays and cargo backlogs, the busiest U.S. port complex shuts its gates for hours on most days and remains closed on Sundays says an article on Fox Business.
Ports operating at 60%-70% of their capacity
“With the current work schedule you have two big ports operating at 60%-70% of their capacity,” said Uffe Ostergaard, president of the North America region for German boxship operator Hapag-Lloyd AG. “That’s a huge operational disadvantage.”
Restock pandemic-depleted inventories
The American supply chain has so far failed to adapt to the crush of imports as businesses rush to restock pandemic-depleted inventories. Tens of thousands of containers are stuck at the ports of Los Angeles and Long Beach, California, the two West Coast gateways that move more than a quarter of all American imports.
Shortage of workers
Participants in each link in the U.S. chain – shipping lines, port workers, truckers, warehouse operators, railways, and retailers – blame others for the imbalances and disagree on whether 24/7 operations will help them catch up. All of them are struggling with a shortage of workers.
The first task to be done
The International Longshore and Warehouse Union, which represents the dockworkers, said its members would work a third shift or on weekends, but the pileup of containers must first be fetched out of the port, so there is space to unload more from ships.
Hiring workers
Congestion won’t be fixed until everyone steps up and does their part. The terminal operators have been underutilizing their option to hire workers for the third shift. The biggest issue it probably comes down to is labor.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Fox Business
