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- The ports of New Jersey and New York, as well as Texas and Georgia, experienced record pilings.
- The turnaround time for container ships has increased across the country.
- Southern California ports face the biggest delays as they handle nearly half of all U.S. imports.
Shipping delays are mounting across the country as several US ports have record backlogs.
As the primary source of imports to the United States – responsible for nearly half of all inbound cargo – southern California ports have received wide attention. The ports have over 60 towering cargo ships lined up along the shore waiting to dock and unload. But, several smaller ports also feel the pinch.
At the Port of Savannah, the fourth largest US port, more than 20 container ships are waiting to dock. The port has set several records this year for the number of container ships that have passed through the location. In July, the Associated Press reported that the port had moved 5.3 million 20-foot containers in a fiscal year – the most the location has ever encountered in a single year.
The Georgia Ports Authority did not respond to a request for comment from Insider, but Georgia Ports Authority executive director Griff Lynch told the Wall Street Journal that the boom in e-commerce contributed to the backlog freighters.
“Because of all this extra cargo being imported, it’s creating a backlog from the ship side to the dock side to the warehouses and the entire supply chain,” Lynch told the Journal.
Shipping containers near a shipyard.
Getty Images
Earlier this week, the Georgia Ports Authority approved a $ 34 million plan to help resolve port delays by adding space to include an additional 1.6 million 20-foot sea containers.
Rising volumes of cargo moving through smaller ports shows how South California traffic diversion is not a viable option
In August, Port Houston set a new record for the number of ocean containers that passed through the port during the month as more than 320,000 20-foot containers passed through the location – a number 29% more high than at the same period the previous year. , as shipping levels were already skyrocketing. A spokesperson for Port Houston did not respond to a request for comment, but the group addressed the new record in a press release earlier this month.
“We expect high levels of the supply chain to continue through 2022 and continue to explore opportunities, including accelerating an already aggressive capital investment strategy to keep our terminals up to demand.” , said Roger Guenther, executive director of Port Houston.
The port of New Jersey and New York, which handles the majority of imports to the east coast, hit a record cargo count for its 13th consecutive month in August. More than 780,000 sea containers passed through the port this month, according to a press release. Earlier this week, the Port of New York and New Jersey had 9 cargo ships at anchor, but a port spokesperson told Insider all ships must dock within 48 hours.
“There is no shortage of manpower or major shipping backlogs. The majority of the ships anchored off the coasts of New York Harbor and New Jersey are tankers that do not call. at the New York and New Jersey Port Authority facilities, ”the spokesperson said. Insider said. “In September and throughout the pandemic, the port was extremely successful in keeping the supply chain in motion throughout the region, as well as freight to the Midwest via rail. ”
Despite record highs in small ports, southern California ports still face the biggest delays
A report by RBC Capital Markets and Orbital Insight that analyzed the 22 most influential ports in the world found that 77% of locations had produced above-average wait times this year. He revealed that southern California ports have the most inefficient wait times of any other major port in the world. The processing time of a container in ports almost doubled in 2021 compared to the averages observed from 2017 to 2019.
Milos Bicanski / Getty Images
The time it takes for a ship to enter port and unload dropped from 3.6 days to 6.4 days at ports in Southern California, nearly five days longer than many ports in Asia which operate 24/7. In addition, port waiting times have recently skyrocketed, with some boats waiting up to three weeks before they can dock.
In contrast, levels at the East Coast ports have been more stable as New York and New Jersey, as well as the ports of Port Houston, have seen only an average increase equivalent to a quarter of a day. The study did not consider the Port of Savannah.
The study identified the biggest difficulty in the ports of Long Beach and Los Angeles as the lack of foot traffic which remains 28% below pre-pandemic levels.
“We were able to quantify the degree of labor shortage by measuring foot traffic,” Mike Tran, managing director of global energy strategy and digital intelligence strategy, RBC Capital Markets told Insider. “Container ships carry around 30% more cargo, which means more to unload, but now they have to do it with 28% less people.”
Tran told Insider the only way for him to see the supply chain crisis resolve is to limit the amount of goods they buy – an unlikely outcome given the holiday shopping season. looming associated with the need of many companies to restore depleted inventory levels.
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