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USA Ports congestion

2021 was certainly not the year of global renaissance that many had expected. The consequences of the pandemic seem to have no end, the severity which affected every aspect of our lives is still visible.

While some changes are more overt, there are others less conspicuous that almost invisibly affect our choices and our lives including the slowly increasing lengths of delivery times for retails goods, potential scarcity and crawling prices.

Despite an estimated impact on the world economy of billions of dollars, the Ever Given disaster in the Suez Canal was only the first in a series of problems that have plagued maritime transport in the last year, namely the transport of goods by bulk carriers or oil tankers, and especially container ships.

Ships waiting to dock and unload their cargoes are growing by leaps and bounds, and hundreds of thousands of containers are estimated to be stranded in the roadstead. 

American companies are facing various problems such as inventory shortages and delays in shipments. But above all, port congestion has contributed significantly to a global container shortage. What’s the root cause slow down and why is it happening? The exaggerated increase in consumer demand for goods, particularly in the United States, combined with the blockades of Asian ports in the summer, has created unprecedented port congestion, which has led to a rise in freight rates (which have now reached record prices) and a lack of reliability in deliveries by shipping lines.

According to The Wall Street Journal, leaders of some of the busiest U.S. ports believe the congestion will not be resolved until the summer of 2022.

The bottleneck isn’t only contained offshore. Supply chain leaders are now also facing logistical challenges and shortages once containers are on dry land. Beyond the bottleneck offshore, there’s a new problem the supply chain leaders are facing: 

Containers are now often stuck in rail yards or warehouses that have reached the limits of their capacity. 

Now in a full circle, other companies needing containers finding a swiftly dwindling supply, which further clogs fulfillment of the supply chain. The unfortunate irony is that if a company ships its products via container today, they’re likely fighting a far more competitive battle to secure new containers for their next shipment from an even smaller available stock. 

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