Record high! More than 40 container ships are waiting for berths outside Los Angeles and Long Beach

August 26th local time, the number of ships berthing at the two largest container ports in the United States waiting for berths reached a new record high, and more than 40 ships are now lining up at anchorages farther and farther away from Los Angeles and Long Beach docks.

The two major West Coast ports in the United States have experienced worse congestion than the shutdowns in 2002 and 2004. When the ports of Los Angeles and Long Beach were blocked for 10 and 8 days respectively in 2002 and 2004, the number of ships never exceeded 30, but the port blockade caused serious economic chaos. The situation today is much more serious. Forty-one container ships are waiting for berths at or near San Pedro Anchorage, which has never experienced such a busy peak season in the 65-year history of container transportation. Los Angeles port data for August showed that 90% of ships sailed directly to the anchorage to join the mooring queue, with an average mooring time of 7.8 days.

Peter Sand, chief shipping economist of BIMCO, a global shipowners' organization, said: "Some of these shippers have a low inventory, and they are stocking up ahead of time to ensure the goods for the upcoming key sales seasons (such as Black Friday and Christmas)."

Peter Sand said that dockers at both ports were unable to load and unload containers at the port in time and quickly. "Because the yard density is now quite high, the logistics efficiency has declined." Sand explained. The lack of chassis across the United States also makes ships wait longer.

Retailers in the U.S. are struggling with record low inventories, which could mean a worsening container shortage in the coming weeks. At present, the inventory-to-sales ratio is only 1.08, which can only maintain the sales volume for one month.

Commenting on the lack of inventory, Steve Ferreira, CEO of Ocean Audit in New York, said: "This is why importers/retailers pay high fees for ship rental and $15,000/FEU shipping space. Small green dots on the AIS show why dozens of ocean-going vessels are trying to berth. " Earlier this month, Gene Seroka, executive director of Port of Los Angeles, gave an update on operations, saying the challenges facing the entire supply chain amounted to "squeezing 10 highway lanes into five".

The map below shows the ships moored in San Pedro Bay

All container ships bound for Los Angeles and Long Beach Port in the next 28 days

Port administrators are advising consumers to make Christmas shopping plans early this year or risk disappointing some people on December 25. This month, the Southern California Ocean Exchange was forced to open its drifting area because the bay's main anchorage and overflow anchorage were full. According to the weekly World Container Index released by Drury on the 26th, the World Container Composite Index rose by 2.1%, or US $204, to US $9,817.72 per 40-foot container, 351% higher than the same week in 2020. This is the 19th consecutive week of increases.

Trans-Pacific freight increased even more, with freight on the eastbound trans-Pacific route from Shanghai to Los Angeles soaring 4%, or US $393 to US $11,362/FEU, while freight per 40-foot container from Shanghai to New York soaring 5%, or US $631 to US $14,136/FEU.

According to the latest report of Drury on the 27th, among the 504 voyages of major routes such as Trans-Pacific, Trans-Atlantic, Asia to Northern Europe and Mediterranean Sea, 17 voyages were canceled from the 35th week to the 38th week, with a cancellation rate of 3%. In the next four weeks, THE Alliance announced the cancellation of nine voyages, followed by the cancellation of seven voyages by Ocean Alliance.

Due to persistent port congestion around the world, backlogs, delays and shortages of equipment have increased further, while ocean spot rates continue to remain at extreme levels. While shippers and freight forwarders struggle to cope with delays and business disruptions, many small shippers find that persistently high spot rates are unsustainable.