Welcome to the October 2014 Logistics Link, the MIQ Logistics monthly newsletter
Nine containerships were among the 13 vessels waiting at anchor outside the adjacent ports of Los Angeles and Long Beach on Monday because of congestion in the harbour.
The highest number recorded by the Marine Exchange of Southern California since it started compiling congestion figures on October 16 was 14. That was on Sunday and included 11 containerships, with the number down by two yesterday.
“The LEI picked up in September, after no change in August, and the strengths among its components have been very widespread over the past six months,” said Ataman Ozyildirim, Economist at The Conference Board. “The outlook for improving employment and further income growth are expected to support the moderate expansion in the U.S economy for the remainder of the year.” – Conference Board
Shipping containers are being delayed for up to three weeks, threatening timely holiday goods delivery to retailers, due to a dearth of transportation equipment and possible labor slowdowns at the the Ports of Los Angeles and Long Beach.
The delays are affecting retailers including JC Penney Co, Macy’s, Kohl’s, Nordstrom, American Eagle, Ralph Lauren and Carter’s, according to three people with inside knowledge of the situation. Retail giant Wal-Mart recently diverted 300 TEUs to Oakland to avoid the bottlenecks, one source said. Wal-Mart declined to comment.
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The congestion at Los Angeles and Long Beach ports has been going on for at least two months, but no one expected it to last this long, and no one anticipates an immediate fix – gridlocked docks possibly threatens holiday season. By Deborah Belgum
For nearly two weeks now, Ram Kundani has been waiting to receive seven cargo containers filled with tops, sweaters and dresses shipped from Bangladesh, China and Indonesia to the ports of Los Angeles and Long Beach. But some 10 days after their arrival, the containers on Oct. 21 were still stacked on container vessels as gridlocked docks made it difficult to unload the big metal boxes.
Around this time last year, Aeromax Inc. Chief Operating Officer Sean Schipper could count on getting his toy products shipped from the ports of Los Angeles and Long Beach to his Lake Barrington, Ill., business in seven to 10 days.
But because of recent congestion at the twin ports, it’s taking twice as long — or in some cases three times as long — to get merchandise delivered to the toy wholesaler, which does nearly $5 million in annual gross sales selling children’s costumes and toys.
“U.S.-NAFTA freight totaled $100.6 billion in August 2014 as all five major transportation modes – air, vessel, pipeline, rail, and trucks – carried more U.S.-NAFTA freight than in August 2013, according to the TransBorder Freight Data released today by the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS). August was the sixth consecutive month with U.S.-NAFTA freight flows exceeding $100 billion.”
Contract negotiations between shippers and 20,000 dockworkers at West Coast ports are progressing toward a tentative agreement in November, the head of the largest harbor said.
Gene Seroka, executive director of the Port of Los Angeles, said he speaks daily with negotiators for both sides on a new accord for ports from San Diego to Bellingham, Washington, which together handle almost half of all U.S. maritime trade.
“American Trucking Associations’advanced seasonally adjusted For-Hire Truck Tonnage Index was unchanged in September, following a gain of 1.6% the previous month. In September the index equaled 132.6 (2000=100), the same as in August and a record high. Compared with September 2013, the SA index increased 3.7%, down from August’s 4.5% year-over-year gain. Year-to-date, compared with the same period last year, tonnage is up 3.2%.”