According to Reuters, removing bottlenecks at US ports is an effective way to overcome supply chain weaknesses.
According to rankings by the World Bank and IHS Markit, the ports of Los Angeles and Long Beach in Southern California are the ports that handle the most seaborne goods in the United States, but are among the most inefficient in the world. .
In the Container Port Performance Index report comparing 351 container ports globally, Los Angeles ranked 328th, behind Tanzania’s Dar es Salaam and Alaska’s Dutch Harbor. The nearby Port of Long Beach ranks even lower, coming in at 333, behind Turkey’s Nemrut Bay and Kenya’s Mombasa.
The total number of ships waiting to unload off these two adjacent ports reached an all-time record of 100 ships on October 18. Sales of American imports have surged, leaving the supply chain infrastructure unsustainable, causing delivery delays and bottlenecks.
The two ports topping the ranking are Yokohama in Japan and King Abdullah port in Saudi Arabia. The remaining three ports in the top five are the Chiwan port, part of the Shenzhen port in Guangdong province, the Guangzhou port in southern China and the Kaohsiung port of Taiwan.
Ports in Asia, the Middle East and North Africa occupy the top 50 positions on the ranking. US ports only feature in the top 100, including the port of Philadelphia (83rd), the port of Virginia (85th), the ports of New York and New Jersey (89th) and the port of Charleston, South Carolina (95th).
The Covid-19 pandemic has disrupted trade around the world, disrupting trade and exposing supply chain weaknesses.
The United States is the world’s largest consumer, importing goods worth about $2.5 trillion annually. US President Joe Biden is fighting for federal funding to modernize dilapidated infrastructure, including seaports. Government control, 24/7 operation and automation make many other countries’ ports more efficient.
Mr. Biden is pushing port executives, labor union leaders and large retailers like Walmart to respond to shipping barriers that are driving up commodity prices and increasing the risk of product shortages during the important festive season.
Southern California port operators are persuading terminal operators, importers, truckers, railroaders, port workers and warehouse owners to adapt 24/7 operations to address backlogs, causing dozens of ships to wait offshore and delays in shipping to stores and e-commerce distribution centers.
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