CHINA & CALIFORNIA - We reported just yesterday that the Port of Oakland in California was experiencing a drastic decline in total cargo volume due primarily to COVID-related lockdowns in China. Today, we learned that significant delays can be seen at the Shanghai port, sending ripple effects to the ports of Oakland and Los Angeles, CA.

A report from CNBC stated that ocean terminals, warehouses, and trucking services in China have suffered from a lack of employees working due to the shutdowns. The source stated that Shanghai’s lockdown is expected to begin relaxing on June 1, so we will be on the lookout to see if pressures decrease at the ports.

At the Port of Oakland, where pressures are the most evident, vessels are reportedly taking six days to load and unload, and import containers are sitting for around 11 days before being transported. At the Port of Los Angeles, on the other hand, it is taking around 12 days for containers to leave the port, and vessels are waiting over five days to be processed. Significant rail delays have also taken a toll.

“Today, rail boxes are waiting more than six days to get on a train,” said Gene Seroka, Port of Los Angeles Executive Director. “That’s triple the dwell time compared to pre-pandemic days. Rail volume is up six-fold since February. We need more rail assets in place at America’s busiest port complex. It’s important that all stakeholders redouble efforts to maximize rail cargo off our docks and into the domestic economy.”

The news source went on to note that as a result of this congestion, shipments are being redirected to the East Coast and passing through ports in New York and New Jersey.

As the situation progresses across the globe, ANUK will be sure to keep you in the loop.