As peak shipping season ramps up, congestion is growing again at key shipping container terminals around the world. Though western consumer demands have eased slightly in 2022, we could be in for another roller coaster ride…
Angie Payne, CEO of A American Container, explains what this means for shipping in the coming months.
Global Supply Chain Congestion
Global supply chains are having to factor in many issues including:
- High freight costs
- Congestion at shipping terminals and inland shipping routes
- An earlier peak season
- The resumption of manufacturing in key Chinese cities after strict Covid lockdowns
Compared to last year, Chinese shipments to top US west coast ports declined by almost 6% in the period between January 1st and May 29th of this year, clearly showing the impact of the lockdowns in some of China’s largest industrial hubs.
Supply chain pressure remains at historically high levels, and it is not expected to ease substantially this year.
According to Angie, “As major Chinese cities come out of Covid lockdowns and restrictions, thousands of factories will resume production, and when they do, they will be working to make up for the lost time. This could have a major impact on our global supply chain.”
Port Los Angeles and Long Beach
The average time that containers have been waiting at the ports of Los Angeles and Long Beach has surged in recent weeks and reached 9.6 days in April, the highest it’s been since July 2021.
“There is concern that an influx of containers from China could lead to packed container yards and even more supply chain congestion as the summer unfolds,” Angie said.
There is also a growing threat of pay-related strikes from dock workers across the United States west coast and in Hamburg, Germany. In northern Europe, key ports are also clogging up, as Shanghai factory production opens.
Are Containers Still Available to Purchase?
Of course! We have plenty of shipping containers on hand ready for modification for businesses across Tampa Bay. Whether you need a lockable storage solution or a mobile office, we are ready to help!
Call our customer service team at A American Container to get a no-hassle quote today; 813-740-1911!
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