Friday, 15 February 2019 13:22

Worsening LA-LB port congestion causing ongoing issues

548 LA Port Congestion


Congestion at the Los Angeles-Long Beach port complex is now affecting the entire supply chain, with issues unlikely to be relieved before March. The port handles close to 40 percent of US imports and movement has been backed up since August, due to a busy peak season for holiday merchandise, followed by an increase in imports as retailers and manufacturers attempted to get ahead of threatened 25 percent tariffs on more than $200 billion of imports from China. Many of those goods are still at the port, taking up valuable real estate. Currently, it is taking 15 days on average for containers to move from the ports to inland destinations. The backlog of containers at the marine terminals because imports can't be drayed to distribution warehouses in a timely manner is now being compounded by service issues at the western railroads, BNSF and Union Pacific. The railroads are not departing trains on schedule, especially to secondary locations outside of the major hubs such as Chicago and Dallas Fort-Worth, so intermodal containers that should be moved from the marine terminals within 24 hours are sitting there for days.



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