Port Congestion Update 08/05/2021

Weekly Vessels Anchored and at Terminals as of 08/05/2021

LA & LB: Anchored 23 | Terminal 26
Oakland: Anchored 5 | Terminal 7 | Coastal 5
NWSA: Anchored 9 | Terminal 7 | Drifting 1

Vessel Congestion Update
Peak season is upon us at the Port of Long Beach and Los Angeles. ILWU (International Longshore and Warehouse Union), dockworkers, truckers, and rail workers continue to handle record numbers of containers. Rail connectors that lead out of the twin-port complex continue to be strained. Once again, the number of container vessels are backing up at both gateways and inching up to record levels. Current anchorage wait times are as high as five (5) days which continues to create havoc on carrier schedules and extends delays to unload cargo.

Economic indicators reflect that U.S. consumer spending continues and is anticipated to remain strong through 2021. Many retailers shipped year-end holiday products early along with back-to-school and Halloween merchandise. In July, Matthew Shay, National Retail Federation President and CEO, was quoted in part: “We expect record sales as families purchase electronics, shoes, and backpacks for in-person learning.”

It is anticipated port congestion will continue for the remainder of 2021. In addition to the San Pedro Bay Complex, the Marine Exchange of Southern California reported a cluster of vessels anchored along the coast and bunched together east of San Francisco. These vessels are waiting for available dock space at the Port of Oakland, however, not all are container vessels. In Savannah, 16 ships were queued at outer anchorages in the Atlantic. In Houston, several ships were lined up outside of the port after both container terminals were closed for four days due to a hardware failure.

Vietnam continues to experience soaring cases of COVID-19 causing ships to back up in large numbers with vessels being turned away. Container availability shortages are mounting with ports experiencing labor shortages on the docks along with trucker shortages. Factory output has slumped and COVID woes continue to spread to the central region as larger outbreaks are reported. The Port of Quy Nhon is in lockdown and outer anchorages in the north have vessels waiting in anchorage.

In China, it has been reported that the delta variant has reached about half of China’s provinces within the last two weeks. The government has moved quickly as millions of Chinese have been placed in lockdown. While cases reported were low, the government action is a proactive one. It is unknown if shippers should make contingency plans should COVID cases escalate and are not contained. Port disruption, similar to what the Port of Yantian experienced, could re-occur.

TMF (Pierpass Fee) at the ports of LA/LB increased on 8/1/21
The West Coast MTO Agreement (WCMTOA) announced that as of August 1, 2021, the Traffic Mitigation Fee (TMF) also known as the PierPass fee at the Ports of Los Angeles and Long Beach will increase by 2.2%. The TMF helps offset the costs of operating extended gate hours. Labor costs are the largest single component of extended gate costs.

Please contact your Western Overseas representative with any questions.