3 Problems Caused by the Congestion at U.S. Ports

Containerized shipping has become a problem of the chaotic supply chain facing U.S importers and Chinese exporters. Hopes are quickly fading that trans-pacific supply chains will normalize this year or even in 2022.

Congestion contributes to the global shortage of shipping containers and the exponential cost of sea freight. 

The number of ships is increasing. The port has already been overwhelmed by the record number of containers arriving on the U.S. coast during the peak season of this year’s shipments, waiting for a birth space at a gateway in Southern California as log jams spread across nationwide warehouses and distribution networks. 

Port leaders who have spoken to shipping companies and their freight customers say the volume of containers is declining.

Ports have emerged as one of the many bottlenecks in the world’s supply chain as ships fill boxes carrying electronics, furniture, holiday decorations and other commodities.

Hundreds of thousands of containers are loaded onto container ships waiting to berth or from terminals waiting to be transported by truck or rail to inland terminals, warehouses and distribution centers. 

The log jam causes the Biden administration to appoint a port envoy last month to work on ways to improve cargo movements in response to complaints from U.S. companies facing inventory shortages, shipping delays and rising costs.

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