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Long Beach Port to Remain Backlogged Until Next Summer, Officials Say

By Drew Van Voorhis

Ships await to be offloaded in the ports of Los Angeles and Long Beach on Jan. 12, 2021. (John Fredricks/The Epoch Times)
Ships await to be offloaded in the ports of Los Angeles and Long Beach on Jan. 12, 2021. (John Fredricks/The Epoch Times)

LOS ANGELES, Calif.—The Los Angeles and Long Beach ports located in the San Pedro Bay are expected to remain backlogged until at least next summer due to a record number of container ships arriving, Long Beach Port Deputy Executive Director Noel Hacegaba told The Epoch Times.

Hacegaba said the extended port congestion may negatively impacting the global supply chain.

The two ports, with cargo that passes through its docks reaching all 435 congressional districts, is expected to accept a whopping 20 million container units this year—a 16 percent increase over the 17.5 million it took in 2020 and 16 million in 2019.

Currently, there are 63 container ships anchored in the bay waiting to berth, a slight decrease from the record number of 73 anchored ships last week although still far beyond what is usual. The 63 ships at anchorage are carrying at least 750,000 container units among them.Epoch Times Photo

Ships await to be offloaded in the ports of Los Angeles and Long Beach on Jan. 12, 2021. (John Fredricks/The Epoch Times)
Ships await to be offloaded in the ports of Los Angeles and Long Beach on Jan. 12, 2021. (John Fredricks/The Epoch Times)

The uptick in ships at the port was first noticed back in July 2020, when manufacturing in Asia began to increase again after slowing down due to the pandemic. Additionally, Americans began spending their money on goods instead of services due to increased time spent at home.

The slow-down in processing time for container ships has been felt across the supply chain, with stores often needing to wait months to stock up on certain items.

Currently, the average time a vessel waits at anchorage is five to eight days, and once at berth, takes another three to five days in order to discharge all of its containers onto land.

In an effort to decrease processing time, the Long Beach port has worked to expand the capacity of the port by launching a new pilot program that will allow cargo to be picked up 24 hours a day.

“We are literally working around the clock to get those ships to birth and get those containers unloaded so that the goods can make their way to the store shelves,” Hacegaba said. “Just last week, we launched a 24-hour pilot program, and the idea is to keep the terminals open 24 hours to maximize the opportunities to move those containers out of the port throughout the day and throughout the night.”Epoch Times Photo

Ships await to be offloaded in the ports of Los Angeles and Long Beach on Jan. 12, 2021. (John Fredricks/The Epoch Times)
Ships await to be offloaded in the ports of Los Angeles and Long Beach on Jan. 12, 2021. (John Fredricks/The Epoch Times)

In addition to expanding operating hours, the port is looking to address supply chain issues by activating vacant land within the port complex.

Back in January, the port activated 17 acres of space to serve as a temporary staging site for containers that have been yet to be picked up by trucks, although that space has now grown to 65 acres. Utilizing the space, the terminals are able to move the containers as soon as they are off the ship in order to allow more ships to berth, Hacegaba noted.

While the port has done what it can to expand operations, it can only go so far without the rest of the supply chain adjusting to allow for extra cargo. Truckers, as well as warehouse space to hold the merchandise, are both operating in a limited capacity, increasing the number of bottlenecks in the chain.

“We’re encouraging all segments of the supply chain to maximize hours of operation and maximize resources because the truck driver shortage existed before the pandemic, but now we also have a labor shortage at the warehouses. So, in our view, it’s even more reason to expand hours of operation because we need those facilities open, and we need those trucks to be moving, and we need all the equipment to be circulating in the supply chain,” Hacegaba said.

While the supply chain continues to ramp up to accommodate the goods, cost is definitely a factor impacting how fast the chain will adjust.

“If you were to ask me, ‘Why is the supply chain not for you for 24/7 to date,’ I would say cost is probably one of the major factors; but when you consider the situation we’re in right where you have 60 ships in anchorage, you have six- to eight-month delays of goods arriving to stores, the question we have to ask is what’s the cost of not, not, not having [merchandise in stores,] he added.

“So it’s going to be incremental, it’s going to be something that’s going to be done over time. We don’t expect the supply chain to readjust overnight. However, we hope that this pilot program we launched last week, will serve as a catalyst to get the broader supply chain moving in that direction.”

Cranes offload shipping containers at The Port of Los Angeles, in Long Beach, Calif., on Jan. 12, 2021. (John Fredricks/The Epoch Times)
Cranes offload shipping containers at The Port of Los Angeles, in Long Beach, Calif., on Jan. 12, 2021. (John Fredricks/The Epoch Times)

Jump starting the supply chain after it originally slowed down during the pandemic may be more difficult than imagined, according to Salvatore Mercogliano, an associate professor of history at Campbell University in North Carolina and adjunct professor at the U.S. Merchant Marine Academy.

Mercogliano described the flow of goods as cars going down a freeway when traffic is flowing—everything moves nicely. But the minute there is a traffic jam, a stoppage is created, and it takes a long time to get that flow back to normal even after the initial issue is dealt with.

“We have that stoppage just due to COVID, and what happened is now we’re catching up,” he noted. “And so all these goods are now flowing across, but the problem is you can offload these vessels faster than the goods can get off the terminals.”

Another big limitation right now is the chassis, which are the back ends of the truck that the containers sit on, Mercogliano said. Similar to other parts of the supply chain, the increased demand has caused an increased need for chassis or it is impossible to move the containers.

“And so now you literally have truck drivers arriving at the port of LA and Long Beach and the containers are there, the trucks are there, but there’s nothing to pull [the containers] on,” he said.

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