As winter winds increase, supply chains and shipping bottlenecks ease
A decline in the number of shipping containers anchored off the ports of California has eased supply chain bottlenecks, but truck drivers are still scarce and Covid-19's latest variant is posing additional limitations.
A major factor behind rising inflation in the U.S. is delays in shipping and procuring materials.
Although there is some improvement this week, the number of container vessels anchored by the port of Los Angeles and Long Beach dropped dramatically.
CNN reports that there were 30 boats anchored at these two ports on Dec. 8, down from more than 80 when the region was at its busiest. At the beginning of November, Southern Californian ports were waiting for 86 container vessels.
According to Matt Colyar, an economist at Moody's Analytics, supply chain issues have improved.
I am increasingly confident that the worst is over, he said.
Over 60 ships from Asia are waiting hundreds or thousands of miles from shore in deeper waters. To avoid congestion, ships are now traveling from Asia at a reduced speed.
It now takes 22 to 24 days for their route, versus 10 to 14 days in the past, said Jim McKenna, chief executive of the Pacific Maritime Association, which represents West Coast terminal operators.
According to the Wall Street Journal, despite signs of improvement in shipping delays, a new voluntary system created by authorities in November is now in place.
Strong winds create rougher seas in winter weather, and officials are concerned that large number of vessels waiting to dock might be affected.
Kip Louttit, executive director of the Marine Exchange of Southern California, which monitors ship movements, told the Wall Street Journal that container ships tend to blow around a lot because of the strong winds.
The ships are being spread out and reducing their speeds in the area.
Expedited Shipping Demand is some of the reason for the delay.
According to research and consulting firm Beacon Economics, nearby ports handled 77 million loaded import containers between January and September, which is a 21% increase from the same period in 2019.
