Port Congestion Update 11/19/21

Weekly Vessels Anchored and at Terminals as of 11/19/2021

LA & LB: Anchored 72 | Terminal 26
Oakland: Anchored 2 | Terminal 9 | Drifting 1
NWSA: Anchored 4 | Terminal 5 | Drifting 5

Vessel Congestion Update
On November 16, 2021, the Marine Exchange of Southern California reported a total of 179 vessels at the port complex of Los Angeles (LA) and Long Beach (LB). Of the 179 vessels, 116 are container ships with 30 at berth/terminal and 86 at anchorage or drift. Container vessels are waiting for an average of 16.2-17.7 days to reach a terminal to unload the containers.

Status of San Pedro Bay Dwell Time Fee
LA-LB port officials said the ports will “delay consideration” of the container dwell fee until at least November 22, 2021. Michele Grubbs, Vice President of the Pacific Merchant Shipping Association, stated, “We are pleased to see progress that containers are moving off the marine terminals.” Railroads and truckers have made progress moving import containers off the docks which prompted the port executives to delay imposing the new fee on overstaying containers by one week. The ports will continue to closely monitor data on container dwell times over the coming weeks.

Since the announcement on October 25, 2021, that the ports would begin charging a dwell time fee on containers, the ports advised they have seen a 27% decline of aging cargo containers on the docks. Gene Seroka, Port of Los Angeles Executive Director, stated in part, “We’re encouraged by the progress our supply chain partners have made in helping our terminals shed long-dwelling import containers. Everyone is working together to speed the movement of cargo and reduce the backlog of ships off the coast as quickly as possible.” Mario Cordero, Port of Long Beach Executive Director, stated in part, “Postponing consideration of the fee provides more time while keeping the focus on the results we need.”

The LA/LB ports plan is to charge ocean carriers for each import container that falls into one of two categories. Containers scheduled to move by truck will be charged for every container dwelling for nine days or more. Containers scheduled to move by rail will be charged for every container dwelling for six days or more. The ports will charge ocean carriers $100 per container, increasing in $100 increments per container per day until the container leaves the terminal.

Storm Stalls Canada’s Biggest Port
On November 16, 2021, The Port of Vancouver stated that rail and road operations servicing the port have been “heavily impacted” by recent flooding and “all rail service coming to and from the port is halted because of flooding, and Canadian Pacific railways are currently conducting damage assessments.” The port further indicated that vessel delays and heightened anchorage demand are expected because of the disruptions to terminal operations.

Federal Maritime Commission (FMC)
The FMC announced a new initiative aimed at identifying data constraints that impede the flow of ocean cargo and add to supply chain inefficiencies. The plan is to pinpoint how data can contribute to the long-term reliability of the domestic cargo delivery system. The initiative is expected to propose recommendations for common data standards used by the international shipping supply chain, as well as “access policies and protocols that would streamline information sharing across the ocean supply chain.” Initial meetings are planned, and findings will be presented at a Maritime Data Summit in Spring 2022.

The FMC will work with the industry to develop greater systems of transparency for services surrounding the international intermodal transportation of goods. “The port gateway corridors are limited by physical constraints and the best options for efficiencies lie with the greater utilization of information technologies and coordination between the different modes in the supply chain,” said Commissioner Benzel. He equates a system that could parallel air passenger travel, which provides information on your gate and when the plane will depart and when baggage is checked-in with correct airport arrival, etc.

Please contact your Western Overseas representative with any questions.