Port of Long Beach is the second busiest seaport in the United States. Due to the labor shortage during the holidays, the terminal congestion got worse this week. But according to the Port of Long Beach Deputy Executive Director and Chief Operating Officer Noel Nacegaba, vessel space in Asia is starting to open up and the cargo rush appears to have reached an end.
When the terminals are at full capacity, (over 80% utilization), they store overflow containers in non-designated areas for storage, and in effect, terminals often refuse to accept return of empty containers that truckers would drop off before picking up another import container.
Trump administration’s tariffs on imports from China has also been a contributing factor as importers tried to beat the proposed increased from 10% to 25% tariff on the affected merchandise.
These developments are resulting in artificial chassis shortage in Southern California as they are either stuck at motor carrier’s facilities with empty containers or they’ve been sittng idle at importer’s warehouses.
Port and terminal operators assured Beneficial Cargo Owners (BCO) the backlog of containers will dissipate around mid-month.
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