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Ports with Most Congestion in Supply Chain, CNBC

Less productive Shanghai’s port- which has been caused by workforce shortage following Covid-19 restrictions- faces the container wait time, CNBC’s recent Supply Chain Heat Map stated.

Brian Bourke, Chief Growth Officer of SEKO Logistics said that ocean stopping points, storehouses, as well as trucking services in the Shanghai port are back to normal status, however, there’s a lower productivity as a consequence of workforce shortage and insufficient drivers. CNBC’s Supply Chain Heat Map, made with 10 of the top maritime and logistics data providers in the world, uncovers the numbers of real-time challenges regarding world’s supply chain to help investors follow the inventory problems of companies. The Heat Map’s task is to determine crucial issues in supply chain including “factory capacity, vessel availability, container availability, trucking capacity, port productivity, vessel transit time and rail capacity”.

Trade indicates a country’s economic status and a company’s supply chain. A vessel and container at rest are not good signs in economy. 

Only last week, Tesla had to cut its vehicle production in the Shanghai port caused by lack of parts. Likewise, Toyota Motor Corporation had no choice but to stop auto production in eight factories of Japan. According to Toyota’s announcement, production for Lexus and Toyotas decreased on account of Covid lockdowns. Moreover, vehicle manufacturers of Mazda, Volkswagen, and General Motors have resorted to lower production accordingly.

Meanwhile, Jasmine Wall, General Manager - Growth, Marketing & Communications, Asia Pacific at SEKO Logistics said gradual reopening of Shanghai relies on “the number of cases in your area and building”. Some have a two-hour permit to do food shopping yet most people are still at full lockdown, added Wall.

According to the Heat Map study, the challenges in China will continue. 

The Port of Oakland is on top of the wait time list, it takes its vessels six days to load and unload.

Import containers remain almost 11 days in the port before transportation. After Oakland’s comes the Port of Los Angeles with almost 12 days for leaving the port and five and a half days to handle vessels.

The Port of Los Angeles is served by BNSF and Union Pacific; BNSF has, for several months, been struggling over its attendance policy. Almost one thousand workers have left since the month of February, said Greg Regan, President of the Transportation Trades Department, AFL-CIO, a labor organization with 33 unions. In this regard, Union Pacific has met almost half of its goal, which is hiring 1,400 new members for its train crew.  

The problem of congestion on the West Coast is still continuing while East Coast and Gulf ports have seen growth in trade.

Pervinder Johar, CEO of Blume Global, said Asian manufacturers are shipping out products early in order to lessen port congestion. He added more shipments are now moving to the ports on the East Coast instead of heading through West Coast ports.

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By Ali on May 25, 2022

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