Insight

Congestion Shifts to East Coast Ports

By In Insight On 14th April 2022


Port congestion is not limited to the U.S. West Coast.

Shipments originating in Asia are seeking alternative ports of discharge to skip the congestion only to run into other congested ports like Charleston, Norfolk, and soon, Houston.   

Meanwhile, L.A./Long Beach is doing better with only 46 vessels heading to San Pedro Bay, approximately half of the vessels reported back in November. The shift of congestion is attributed to the re-routing of freight and the Lunar New Year shipping slowdown.

  • All eyes are on the International Longshoremen Workers Union (ILWU) and Pacific Maritime Association (PMA) labor contract renewal negotiations coming up quickly on May 15.
  • Current situation in Ukraine impacts vessel routing and schedules, especially in Eastern Europe, causing significant delays.
  • One of the largest shipping lines, Maersk, confirmed being subpoenaed by the U.S. Department of Justice related to the ongoing investigations into ocean carriers and supply chain disruptions as the Biden Administration checks in with international ocean carriers and alliances on soaring ocean prices.

Port Notables

 

Ports of Los Angeles & Long Beach implemented a Clean Truck Fund (CTF) rate of $10/TEU on April 1. The fee was created to help fund and incentivize the changeover to cleaner trucks, to accelerate the development of zero-emissions technology. This fee is in addition to the current Pier Pass fee.

Port of Shanghai - Carriers are starting to skip Shanghai due to the ongoing lockdown which is causing significant congestion. It is recommended to avoid Shanghai ports if possible and instead use surrounding alternative ports: Ningbo, Xiamen, and Qingdao. Pickups and deliveries, especially for truck traffic between Shanghai and the outer regions continue to be difficult.


NNR Global Logistics website is available in multiple languages.

Select your language