Trade Update: China’s Xinjiang Region
July 16, 2021
Global Congestion Worsens
July 21, 2021
Weekly Vessels Anchored and at Terminals as of 07/16/2021
LA & LB: Anchored 20 | Terminal 28
Oakland: Anchored 7 | Terminal 7 | Coastal 14
NWSA: Anchored 10 | Terminal 3
Vessel Congestion Update
The San Pedro Complex continues to direct vessel arrivals to anchorage. In June 2021, import cargo volume was up, however, it was lower than the May 2021 import numbers. Long Beach Port officials attribute the decrease to consumers’ pivot to spending at restaurants, bars, and travel instead of online shopping as the COVID-19 restrictions are lifted.
Unforeseen events left a global shortage of containers which has caused a domino effect on the supply chain and continues to disrupt local and global trade. An article from Splash, dated July 15, 2021, indicated: “Maritime has estimated that 10% of the world’s shipping capacity has been taken out due to port congestion issues” and “The ratio of waiting in Oakland, Savannah, Seattle, and Vancouver are all above 65% while the Port of Yantian, with hampered productivity through June caused by a Coronavirus outbreak, has done well to clear much of its backlog over the past weeks.”
On July 11th, while attending the gathering of finance ministers of the Group of 20 nations, U.S. Secretary of the Treasury Janice Yellen, stated in part: “We are a connected global economy and what happens in any part of the world affects all other countries.” As cities and countries have started to declare victory against the pandemic, easing restrictions and returning to normal life, Yellen warned that the public health crisis is not over. “The spread of coronavirus variants has raised doubts about the pace of real economic growth in the second half of this year and beyond.”
Kristalina Georgieva, managing director of the International Monetary Fund (IMF), stated in part: “Essentially, the world is facing a two-track recovery. The IMF will maintain its projection for 6% global growth this year but warned that growth was being suppressed in developing countries where infection rates are surging.”
Note: On July 14, 2021, Port of Los Angeles Director Seroka advised: “Twenty (20) container ships would be arriving at the San Pedro Complex within 3 days.” The data above may represent lower numbers of actual vessels in anchorage as the weekend approaches and additional vessel arrivals are anticipated.
Please contact your Western Overseas representative if you have any questions.
