LA & LB: Anchored 1 (NM*) | Terminal 23 Loitering 23 (NM*)
Oakland: Anchored 1 | Terminal 10 | Drifting/Loitering 6
NWSA: Anchored 0 | Terminal 7 | Drifting/Loitering 1
Vessel Congestion Update
On August 26, 2022, the Southern California Marine Exchange (SCME) reported 81 total vessels in the twin ports of Los Angeles (LA) and Long Beach (LB). Of the vessels, 23 are container ships with 1 at anchor or loitering within 40 NM* and 22 at berth. An estimated 24 vessels are loitering/steaming toward the San Pedro Bay outside 150 NM*. The average number of days container vessels are waiting at anchor for berth is 3.25 to 4 days and the average time at berth is 6.7 days.
*NM = Nautical Mile
Container Dwell Fee on Hold
The temporary policy announced on October 25, 2021, by the twin ports has seen a combined decline of 46% in aging cargo at dock/terminals. The executive directors of both ports will reassess fee implementation after monitoring data over the next month. Fee implementation has been postponed by both ports since the program was announced and both have extended the fee collection through September 23, 2022. Note: The ports, under the policy, would charge ocean carriers for each import container left on the dock for nine days or more at a rate of $100 per container, increasing $100 per container per day until the container leaves the terminal.
Cargo Flow of Goods
Inflation has seen a change of consumer habits compared to the beginning of the COVID pandemic. This change has consumers spending more on crucial items such as food and healthcare rather than furniture or large home-type purchases. The change in consumer buying has triggered major order cancellations. However, import numbers are expected to bounce back as importers will want to replenish inventories prior to the Chinese New Year which falls on the last week of January 2023. The National Federation of Retailers continues to anticipate 2022 retail sales to grow between 6 percent and 8 percent over 2021, as sales were up 7% during the first half of the year.
Congestion Continues at the Major East Coast Ports
On August 18, 2022, the Journal of Commerce indicated in part that empty containers are piling up and dozens of ships wait at anchor at major U.S. East Coast ports to reach a terminal. The port of New York vessels continue to experience being five, six, seven days behind schedule and carriers have begun to cut port of calls.
More than double the number of new containers were manufactured last year in response to the spike in pandemic demand for containerized goods. Now, Asia has more than enough to satisfy shippers’ demands and therefore, ocean carriers are lax in loading empties when they are not needed at the origin. This is costly and adds more time delays to their vessel schedules. Note: More than 5 million TEU of new containers were made which allows for more than enough need for containers at origin.
Please contact your Western Overseas representative with any questions.