- Jan 16, 2019 -
(The news from Singapore UNL Shipping & Logistics Pte Ltd )
On January 9, 2019, foreign media JOC reported that the congestion situation in Los Angeles and long beach port was getting worse this week, because of the labor shortage during the New Year holiday, some parts of long beach port were nearly paralyzed.
The dock congestion problem is due to the cumulative effects of the Christmas and New Year holidays.According to the contract of the dock union, the two holidays are non-working days, and the Christmas Eve and the New Year's eve are half-day work. At the same time, because a group of experienced workers choose to take the annual leave during this period, the dock USES a lot of inexperienced temporary workers, and the working efficiency is also reduced.
Other factors include importers' swooping in 'on large quantities of spring goods ahead of the Jan. 1 deadline because of concerns that the trump administration could impose an additional 25% tariff on Chinese goods.
At the same time, empty cabinets are also an important cause of congestion.When the port is operating at full capacity (up to 80% utilization rate), the port will temporarily store the extra containers in some areas that are not used for storage at ordinary times. As a result, the port often refuses to accept the empty containers that the truck driver would like to return and then pick up the imported heavy containers.An artificial shortage of drivers occurs when drivers must make two trips to complete the normal operations of one trip to empty the vehicle and pick up the container at the same time.To make matters worse, when truck drivers fail to make an appointment in time to mention the import containers, customers will have to pay for the terminal's overdue stacking fees and demurrage fees.
These conditions are also causing a man-made frame shortage in southern California.The frame was either not available at the port or the warehouse was not able to unload it in time.
Be prepared for delays and extra costs due to congestion in Los Angeles and long beach.