LA·Long Beach Ports Have 81 Waiting Ships... US Faces Total Crisis of 'Containergeddon'

"Ruining Consumers' Year-End Shopping"... Spotlight on Breakthrough via Railroads

On the 13th (local time), numerous containers were stacked at the Port of Los Angeles (LA) in San Pedro, California. On this day, President Joe Biden requested private sector cooperation to resolve bottlenecks in the U.S. logistics network and ordered the Ports of Los Angeles and Long Beach to operate 24/7 year-round. San Pedro, USA = Photo by AFP Yonhap News

[Asia Economy New York=Correspondent Baek Jong-min, Reporter Kim Heung-soon] The logistics situation in the United States is in total chaos to the extent that President Joe Biden has even asked Samsung Electronics for help. There are obstacles everywhere for cargo coming from Asia, including China, to reach the U.S. East Coast, causing an increase in logistics costs. As companies and consumers grow anxious that waiting for cargo could ruin the year-end shopping season, warning signs have appeared for economic growth recovery. President Biden’s direct call for private companies to work 24/7 shows just how desperate the situation has become.

The “fact sheet” and background briefing on the 90-day logistics relief project announced by the White House on the 13th (local time) clearly reveal the current atherosclerosis-like condition of U.S. logistics.

Sharp Increase in Import-Export Containers at U.S. Ports
Severe Labor Shortage Compared to Cargo Volume

The volume of cargo handled by ports across the U.S. this year increased by about 18% compared to the previous year. The ports of Los Angeles (LA) and Long Beach, which account for 40% of all containers entering the U.S., saw a 30% surge in import-export containers during the first six months of this year compared to last year.

Despite the increased cargo volume, there is a shortage of port labor, causing serious port congestion. Currently, 81 vessels are waiting without docking at the LA and Long Beach ports. U.S. media point out that it can take up to a month from ship arrival to unloading.

As concerns arose that handling the increased cargo before the year-end shopping season would be insufficient, the White House formed a task force (TF) to encourage 24-hour operations at the LA and Long Beach ports.

Even if port conditions improve, solutions for the next stage are needed. Aside from encouraging private companies responsible for transportation and warehousing, there is no other way, but many variables remain, making early resolution of the logistics crisis difficult.

A representative example is trucks. Due to a shortage of drivers, operating trucks to carry containers is difficult. Trucks are the core of U.S. logistics. The notoriously difficult U.S. driver’s license acquisition process has also affected securing truck drivers.

The White House has supported state driver’s license testing centers to process 50,000 commercial and personal driver’s licenses monthly, but it is still not easy to take the driver’s license test.

Even the largest U.S. freight carriers such as Walmart, FedEx, and UPS have pointed out that resolving the logistics crisis through 24/7 operations is impossible without expanding the truck driver workforce.

The U.S. government is ultimately turning its attention to resolving the logistics crisis through railroads. Utilizing the railroad network, which had been overshadowed by trucks, is identified as a solution to overcome the current crisis.

Despite government efforts, the prevailing assessment is that early resolution of the logistics crisis is difficult. James Furman, a Harvard professor who served as chairman of the White House Council of Economic Advisers under the Barack Obama administration, explained, “There was no playbook for the current situation,” adding, “Officials need to understand the current situation before devising a response strategy.”

Samsung Electronics has produced a limited edition Bespoke 4-door refrigerator with an American flag pattern targeting North American consumers.
[Photo by Samsung Electronics]

Why Biden Sent an SOS to Samsung Electronics
"72% of U.S. Households Own at Least One Samsung Appliance"

Samsung Electronics plans to explore the role it can play as a manufacturer in response to the LA port’s 24-hour operation system under this project. According to the White House, Samsung Electronics plans to move more than 60% of the containers at the port over the next 90 days.

One likely measure is to establish nearby storage facilities to unload containers carrying home appliances. Another is to speed up product shipments and support land transportation to ensure smooth delivery to consumers.

President Biden’s inclusion of Samsung Electronics in meetings requesting cooperation from related private companies to resolve the U.S. logistics network issues proves how significant Samsung’s presence is among local consumers.

Samsung especially leads the consumer electronics sector in North America, the world’s largest home appliance market. The White House stated, “72% of U.S. households own at least one Samsung home appliance.”

Earlier, Samsung Electronics ranked first overall in the “Consumer Satisfaction Survey for Home Appliances and Electronics Industry” announced by the American Customer Satisfaction Index Association on the 26th of last month, scoring 80 points in the home appliance category. This survey, conducted from July last year to June this year with a total of 7,960 U.S. consumers, showed that Samsung Electronics was the only company in the home appliance sector to increase consumer satisfaction compared to the previous year.

According to the market research firm Trackline, Samsung has held the number one market share in home appliances such as refrigerators, washing machines, and dryers for four consecutive years since the first quarter of 2016.

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