Rising consumer sales and labor shortages have created a supply chain crisis that has resulted in severe congested ports.

Holidays at the ports of Long Beach and Los Angeles – America’s busiest shipping complex, are always buzzing. But 2021 is a year unlike any other.

An explosion in demand and a supply chain crisis have led to unprecedented congestion of ships lying offshore with towering stacks of containers clogging entire piers. Inside the port, thousands of workers are working around the clock to unload each container containing televisions, bicycles, medical supplies and more, onto trains and waiting truckers. waiting to be transported to nearby residential areas. Finally, the goods are taken to the warehouses, stores and to the consumers.

Danny Miranda, president of ILWU Local 94, the union representing train workers, said: “It’s like rush hour freeway traffic”, “There’s nowhere to go. Every no space is being used to its full capacity”.

In June, the Port of Los Angeles became the first port in the Western Hemisphere to handle 10 million container units in 12 months. Month after month, the complex regularly sees record numbers of cargo ships stranded in nearby waters. The backlog has left some ships idling in waters outside ports for weeks, emitting pollutants, creating challenges for consumers and retailers, especially during the holiday season.

The pandemic caused customers to increase their online shopping, disrupting the global supply chain.

Local and government officials are working hard to reduce the backlog, including a shift to 24/7 operations. But with a shortage of truck drivers to deliver goods and warehouse space, a return to normal traffic may still be a long way off.

At the start of this year, before the vaccine became widely available, more than 5% of the 15,000 shipbuilder workers at the two ports were infected with the corona virus. 22 workers lost their lives to Covid during the pandemic.

The pandemic that broke out in the US led to distances and restrictions on the use of essential services, causing consumer spending on goods to skyrocket. Americans are continuing to spend more than ever on goods, and supply chains are struggling to keep up.

“Americans are buying 20-25% more containers from China. If you have a system set up to grow 2-4% and you ask it to grow to 25% overnight then really, that’s it. It’s impossible,” Edward Renwick, vice president of the Port of Los Angeles board, said at a recent board meeting.

Dozens of container ships wait off the coast of ports, causing congestion around Los Angeles.

“I think there’s going to be quite a bit of stuff that isn’t available for Christmas,” said Bill Michels, vice president of operations for the Americas at the Chartered Institute of Procurement and Supply. gifts they have listed. There will be fewer choices.”

“The pandemic has changed everything. People want next-day delivery. It was Amazon who created this model and now we’re all stuck with it,” Michels said.

Experts warn that reducing the backlog at the port complex will require more truck drivers as well as lower consumer demand. According to the trade body, the US needs about 80,000 more drivers than it currently does – a shortage caused by low wages, long working hours and difficult working conditions.

California has increased the payload truckers are allowed to carry on state highways and expanded the ability to issue commercial permits to motor vehicles. Without more drivers to deliver goods, the backlog would remain, said Katheryn Russ, a professor of economics at UC Davis.

Long queues of trucks, drivers waiting to enter the pier at the Port of Long Beach in November.

Supply chain issues can also be a wake-up call for consumers to rethink their buying behaviour, Russ said. “It reminds me of the excess in everyday life.” “It’s not the case for everyone but for a lot of people we already have so much of it, so it’s great that we’re being more gentle with the environment.”

Miranda and port officials hope the $1.2 billion infrastructure bill recently signed by President Joe Biden will ease long-term hardship, with $17 billion going to ports. Railroad investments will also expand capacity, helping goods move faster.

But in the meantime, the best approach to eliminate supply chain shortages is to minimize the spread of Covid-19, increase testing capacity, and resolve the issue. community spread.

Source: The Guardian

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