Washington – A large backlog of cargo ships is stuck outside two of America’s biggest ports, in the latest sign of the supply chain disruption hitting the United States.
On Monday some 65 container ships were queuing outside the ports of Los Angeles and Long Beach, California, which handle almost half of all cargo containers entering the country.
Before novel coronavirus (COVID-19), it was unusual for more than one to wait for a berth.
It’s linked to surging demand for imports as the US economy has reopened.
US retailers and manufacturers have rushed to place orders and restock their inventories, but the global shipping system has not kept pace.
Coupled with COVID-19 disruptions, it’s caused shortages of everything from children’s toys and timber, to new clothes and pet food. It has also pushed up consumer prices.
Together, LA and Long Beach are the main seaborne gateway to the US, particularly for imports from China.
Some cargo ships have been diverted because of the backlog, but nearby ports like Oakland do not have the capacity to deal with the volume of trade.
Head of the Port of LA, Gene Seroka, last week warned of a “significant volume” of trade “headed our way throughout this year and into 2022”.
“We continue to monitor a host of variables, disruptions continue at every note in the supply chain,” he added.
Cargo volume at the Port of LA is up 30 per cent this year to date, compared to the whole of 2020. And on Saturday a record 73 ships were stuck outside the port – almost twice as many as last month. (BBC)
