A backlog of cargo ships waiting to enter the ports of Los Angeles and Long Beach is helping drive up the cost of goods and services during the pandemic. A record 70 freighters carrying everything from furniture and electronics to toys are facing delays at the port, which handles 40% of the country’s imports.
Backlogs can cause more confusion during the holiday shopping season.
According to Los Angeles Harbor director Gene Cerocca, shipment traffic has increased by 50% from pre-pandemic levels. “U.S. consumers are so strong and episodic that they can’t absorb all of this cargo into their domestic supply chain,” Seloka said. “That means you may not be getting the product you need as usual. If you’re shopping on vacation, start now.”
The lack of trucks and drivers to transport goods to and from the port raises concerns that some store shelves may be empty during the holiday shopping season.
Bob Bisterfeld, CEO of transportation logistics company CH Robinson, said:
He said major retailers are paying for planes to fly goods in from overseas, and some are leasing entire container ships.
“Frankly, it’s something I’ve never seen before,” Biesterfeld said. “We hope to have more bare shelves than people this holiday season.”
Tony Jabka, owner of the Bike Palace in San Pedro, is still waiting for the 100 new bikes he ordered last year after buyers cleared his inventory.
“I think some of them are riding here in San Pedro,” he said. “Looking down at the port, it’s frustrating to see all the containers stacked at five or six heights.”
Supply chain problems mount as California ports face record backlogs: “If you’re shopping for a vacation, start now.”
source link Supply chain problems mount as California ports face record backlogs: “If you’re shopping for a vacation, start now.”