Ports of Los Angeles and Long Beach extend truck hours amid deluge of cargo
- Record volumes have persuaded port authorities to extend the opening hours of ports in Los Angeles and Long Beach in California, according to an announcement on Friday. Ports in San Pedro Bay will be extending the hours that trucks can pick up and drop off containers.
- Long Beach will take the first step towards a “24/7 supply chain by maximizing night-time operations,” while the Port of Los Angeles extends door opening hours on weekends, according to the company. ‘announcement. The latter is part of a program called “Accelerate Cargo LA”, which will function as a pilot to ensure that the availability of doors meets freight demands.
- Officials at the ports of Long Beach and Los Angeles said they also called on marine terminal operators to use all available boarding times, especially night gates, “to reduce congestion and maximize capacity to handle cargo. merchandise”.
The latest adjustments to port schedules come after months of congestion and increasing consumer demand. Port bottlenecks have had a direct impact on trucking companies, faced with the possession of equipment and a shortage of dodge drivers.
Long Beach said it processed 807,704 total 20-foot equivalent units in August, up 11.3% year-on-year and 21.6% from August 2019. This month, the port began offering information, alerts and updates on traffic conditions by SMS to drivers.
The Port of Los Angeles handled 954,377 TEUs in August, which nearly hit the August 2020 record of 961,833 TEUs. In the first eight months of this year, the overall cargo volume is 7,273,053 TEUs, a 30% year-over-year increase.
The two California ports are responding to a post-pandemic issue they had with container ships anchored near the ports of Los Angeles and Long Beach. According to Marine Exchange of Southern California, there were 69 container ships at anchor or in drift areas and 30 docked in ports as of Tuesday morning.
The actions taken by port officials in San Pedro Bay are likely in response to growing observations that bottlenecks could seriously disrupt the supply chain and then the North American economy. Russell has estimated disruptions of up to $ 90 billion worth of goods if congestion continues into October.
Loads transferred from Los Angeles to Stockton, Calif., Increased 35% for the week ending Sept. 19, according to Dean Croke, senior analyst at DAT. Stockton is a large warehouse market where many shippers send e-commerce products, Croke said.
The spot price from LA to Stockton TL can reach $ 4.44 per mile, Croke said, up from $ 3.14 per mile a year earlier, a jump of 41%.
“This is a new 12 month record on this great e-commerce route,” said Croke.
But shippers also send imported goods on long journeys from Los Angeles County due to the difficulty in getting them by rail, Croke said. TL volume from Los Angeles to Atlanta grew 22%, Chicago 23% and Dallas 24%, Croke said.
The higher shipping costs will likely drive consumer prices up as the country heads into the holiday season, Croke said.
“This won’t end until Christmas,” said Croke, speaking of the port’s congestion. “The backlog, the congestion. It’s going to take a long time for them to clear 70 container ships … and 17 container ships arrive in Los Angeles every three days on average.”
This story was first published in our sister publication, Transport Dive. Register here.