Transportation Roundup: Container congestion continues

Supply chain, transportation problems continue to hamper SSGA member companies

As we head into a third year since COVID first began disrupting our supply chains, transportation problems have not subsided for SSGA member companies. Container and chassis availability and booking delays continue to rank high among the issues facing exporters.

“We can’t get bookings,” said one manufacturing company’s shipping team leader. “Sometimes there are no containers or there are containers and no chassis.”

The company reports being “ghosted” by one global shipping company, meaning it has not responded to their requests for service. Other issues include bookings being unavailable to certain countries, booking times stretching from two weeks to six weeks – “if we’re lucky, if a container is there” – to paying exorbitantly high premiums to secure truck drivers.

The company, like many of those that ship agricultural products, is looking for answers and turning to SSGA for help. SSGA is happy to write letters on behalf of a company or group or put them in contact with officials such as a state department of transportation.

SSGA and its Competitive Shipping Action Team wants to hear your concerns, as well as your ideas, so we can work to find real solutions and educate officials and influencers and facilitate real change. Please stay in touch.

Chinese lockdowns, back-to-school season cause more container congestion

One in five of all container ships are waiting outside of ports, according to the latest data from Windward. Chinese COVID-19 lockdowns have been named the biggest factor for the congestion. One quarter of these vessels are delayed at Chinese ports, a number 195% more than what it was in February. Read more about the report here.

This backlog of Chinese freight, coupled with earlier back-to-school imports, has the ports of Los Angeles and Long Beach bracing for another cargo surge.

School merchandise typically arrives at ports in May, but last year’s import backlog has retailers bringing in product as early as they can to prepare for back-to-school season. Read more from the Journal of Commerce here.

Two Chinese carriers shipping more empties than loaded containers

CNBC analysis of 2020 and 2021 container data found that two Chinese carriers, OOCL and its parent company, COSCO, shipped more empty containers than loaded out of the Port of Los Angeles.

OOCL recorded a 35.1% decrease in loaded containers and a 104.1% increase in empty containers, while COSCO transported 4% more loaded containers and 1-4.6% more empties.

The analysis was completed with data the Port of Los Angeles, Port of Long Beach, U.S. customs and HIS Markit PIERS import export data. Read CNBC’s full report here.

Almond industry struggling to transport crop

Scott Phippen’s almond warehouse in California is stuffed with 30 million pounds of leftover almonds from last year’s harvest, waiting for container ships to transport them to Asia, the Middle East and Europe. The same is true for more U.S. agricultural exporters. Read more from the NY Times here.