"US Port Logistics Crisis Due to Cargo Surge Expected to Continue Until Next Year"

Surge in Imports and Shortage of Port Workers Cause
Last Month's Import Container Volume Hits Record High

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] The logistics crisis caused by a surge in imports and a shortage of port workers at major U.S. ports is expected to continue until next year. Concerns are rising that the global logistics crisis will worsen due to delays in docking periods along with rising maritime shipping costs caused by container shortages.

According to the Wall Street Journal (WSJ) on the 5th (local time), operators of major U.S. ports have forecasted that the congestion, which began last summer, will continue until next year.

An official from the Georgia Port Authority said, "The logistics crisis is expected to last at least until mid-next year or the end of next year."

Last month, it is estimated that 2.37 million import containers flooded into major U.S. ports, the highest number since 2002.

Additionally, the total number of containers imported into the U.S. this year is expected to reach 25.9 million, breaking last year's record high of 22 million within just one year.

According to WSJ, about 40 container ships carrying export cargo bound for the U.S. are currently stuck offshore in front of California, unable to unload their cargo at the ports of Los Angeles (LA) or Long Beach.

The ports of LA and Long Beach handle one-third of all incoming shipments to the U.S.

This logistics crisis is analyzed to have occurred because cargo handling operations have been delayed due to labor shortages at ports following the COVID-19 pandemic, coupled with an increase in the volume of import containers, resulting in a docking crisis.

Furthermore, after the COVID-19 pandemic, consumers significantly increased their consumption of office supplies, interior-related products, and electronic devices, which also contributed to the surge in import volumes.

With containers stuck offshore in front of the U.S., a global container shortage has increased, triggering a chain reaction of soaring maritime shipping costs.

In response, the Joe Biden administration has decided to dispatch a special envoy team to major ports to seek ways to improve the logistics environment.

A Long Beach port official predicted that the docking crisis will not end until the Lunar New Year next year, when factories in China are expected to shut down for holidays.

This content was produced with the assistance of AI translation services.