News & Publications

US West Coast Port Congestion

The current projection regarding the congestion in the US West Coast Ports unfortunately is not optimistic. Like our customers have read in many industry publications and in our logistics advisories, the continuous congestion and delays affecting US West Coast ports may leave lasting negative impacts on the region. This is true despite the fact that the busy holiday season is approaching its end. 
 
Shippers must keep the port congestion in mind when planning their logistics solutions.  With delays directly impacting cargo and no improvement to be seen on the horizon, businesses are adopting “entry port diversification” strategies. As the situation continues, more cargo is being routed elsewhere, which will have a long-term effect on the LA-Long Beach region.
 
For those shippers whose only option is to use the LA-Long Beach ports, the future may be challenging, given the high level of uncertainty and the high investment these parties have likely already placed in their supply chains.   The majority of these shippers have been seeking optimization through distribution warehouses and distribution channels in the region. In general, the atmosphere is becoming tense and shippers feel they are being held captive.
 
It is estimated that since October, stopping at the Los Angeles-Long Beach port complex delayed container ships by an average of 3.4 days.  Currently shippers continue to report terminal delay times of 7 to 10 days.

Industry players are being proactive in assisting shippers in finding alternative, more reliable solutions, (in general at a higher costs and longer transit times), while continuing to put pressure on parties involved.  This week's International Longshore and Warehouse Union meeting in San Francisco may or may not be the end to seven months of contract negotiation that has engulfed the West Coast in disruption and uncertainty.  Although talks are continuing, there is unfortunately no end in sight and the word “frustration” is mentioned by many.

How can we help?
As a logistics service provider, Allyn is prepared to seek options to help minimize the impact this has on our clients and their customers.  If this could be a challenge for your business, contact the Allyn Logistics Sourcing Group (AllynLogistcsConsulting@allynintl.com) for assistance related to the West Coast Ports situation and any other transport needs.

Contributor: Natalie Gonzalez Brandlova

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