General

40 container ships at anchorage in Long Beach, Los Angeles

With the massive construction of containers and container ships in the past month, the port of San Pedro Bay in southern California has once again operated at record levels.

The Southern California Maritime Exchange and the San Pedro Bay Ship Traffic Service Center reported that the Port of Los Angeles/Long Beach is still at a record level, with 40 container ships waiting at anchorages or drifting areas.

Inland transportation system hinders port container shipments

In its latest analysis of the Southern California supply chain, Project44 stated: "Although the Port of Los Angeles and Long Beach have handled a record number of containers, the outdated rail and road infrastructure on the West Coast hinders the efficient delivery of containers from the port.

Due to inland traffic congestion, the ports on the west coast to handle the influx of containers have encountered capacity problems faced by North American rail and road transport companies. "

According to data from Project44, the average weekly berthing time at the ports of Los Angeles and Long Beach decreased by nearly three days last week, which indicates that once container ships arrive at the terminal, the demand for handling the backlog of container ships will rebound strongly. However, the Port of Los Angeles revealed in its daily signal updates for inbound traffic that the waiting time at the anchorage increased by nearly one day, averaging 7.6 days.

However, everyone agrees that the recent surge in inventory is attributable to retailers and manufacturers, who started to increase inventory earlier than usual.

It is estimated that the container throughput of the port will increase by nearly 30% in two weeks, and it is estimated that the congestion will be more congested from October to December.

Increase in air freight

On August 26, an overseas cargo plane operator at Shanghai Pudong Airport was diagnosed with new coronary pneumonia. Many freight forwarders have stopped accepting reservations in Shanghai and have begun to transfer to other airports.

Like Mazda Motor Company said last week, due to the uncertainty of the recovery of PVG air cargo services, the company has suspended operations at its manufacturing plants in Hiroshima and Hofu, Japan.

Neel Jones Shah, the global head of Flexport Air Cargo, also said that after obtaining one of the few tarmac vacancies in the cargo terminal, it was originally planned to resume the dedicated charter flight operated by Atlas Air at the end of last week. After a positive case was found at the airport, their flight was cancelled yesterday. Two of the flights have been transferred to Hong Kong, where cargo is carried out, and the September emergency plan has been implemented.

At present, SIAS has closed some terminals, and the reduction of cargo capacity has exacerbated the decline in the work level of the airport.

All-cargo airlines cancelled hundreds of flights to avoid long loading delays, which would cause pilots to run out of duty hours and suffer losses. There are also some flights that have to leave without loading cargo.

Many people in the industry said that the cargo has been transshipped to Zhengzhou, Shenzhen, Guangzhou and Hong Kong routes. 80% of the flights at Shanghai Pudong Airport were cancelled last week, and it is expected that 50% of the flights will be cancelled this week.

Freightos, an international shipping digital booking platform, said that due to the shortage of aircraft, the freight from PVG to the United States has increased by 15% to 25% in the past week, which is twice the amount of a year ago. Spot freight rates destined for Europe increased by 12% to 15%.

Freight buyers said that they pay US$10.50 per kilo or higher for air freight. It is expected that China’s air freight will soon be close to US$15 to US$20 per kg, but the freight for lighter cargoes priced by volume will be lower.

Currently, SIAS, which is jointly owned by Shanghai Airport Authority, Air China and several ground handling companies, has not yet indicated when it will fully resume cargo operations, but the large backlog of cargo in the terminal and shipper facilities means that the bottleneck will be restored after normalcy. It may last at least a few weeks.

So, it’s time for the idea to decide the way out and the layout to decide the ending!