US Port Congestion Gets Worse

During the last weekend of August, there was a record 47 container vessels waiting outside the ports of Los Angeles and Long Beach.¹ When ships are anchored offshore waiting for an available berth, they miss subsequent departure dates. This leads to cancelled sailings, reduction in much-needed capacity, and slowdown of container and chassis circulation, which adds to the upward pressure on already record-high rates.²

Many experts believe the congestion will not unwind until well into 2022. Customers are looking for better alternatives through Canadian ports or ports on the US east coast.

Sources:
1. Cargo Congestion Worsens With More Ships Waiting to Enter U.S. Ports, Bloomberg, Sept 9, 2021. Accessed Sept 13, 2021.
2. Port congestion sapping major Asia-US ship capacity injection, Journal of Commerce, Aug 30, 2021. Accessed Sept 13, 2021.