If you’re sick of hearing about Long Beach (LGB) & Los Angeles (LAX) port congestion, we’ve got bad news for you. Expect congestion to get worse. Imports from Asia are not showing any signs of slowing down, and will only increase with peak season approaching. The Purchasing Managers’ Index (PMI) reached an all time high of 63.4 in July. The Southern California ports are expecting 10% growth in container volumes this year, and many are calling for 24-hour shifts to support the growth.
These increases have led to congestion worsening, with LGB/LAX rail operations deteriorating due to lack of rail capacity and railcars. We are seeing continued increases in cargo transloading in Canadian ports to avoid the congestion of the US West Coast ports.
1. Long Beach will need 24-hour shifts for future cargo flow, Journal of Commerce, Aug 5, 2021. Accessed Aug 9, 2021.