The ports of Los Angeles and Long Beach have established a pattern of congestion that practically every sector of the international supply chain predicts will endure at least through the summer â and maybe longer â if second-half volumes do not decline.According to industry insiders, recent figures on trucker wait times, container stay times, the number of ships in the harbor, and chassis availability have all plateaued, indicating that things arenât improving significantly but arenât getting much worse either.
Several executives from ports, ocean carriers, intermodal equipment providers (IEPs), non-vessel operating common carriers (NVOs), third-party logistics providers (3PLs), terminal operators, waterfront employers, and the International Longshore and Warehouse Union (ILWU) have met and discussed the issues multiple times.Material handling systems optimized connections, effective technology, good information sharing, and simplified infrastructure are all essential components of a successful supply chain.
Although there are many things that businesses can do to avoid delays and maintain accuracy in their own shipping, receiving, and transportation infrastructure, one important area that can be difficult to manage is ports.Why Is There Congestion on the Ports of Los Angeles and Long Beach?The elements below depict the impact of record imports and port congestion in Southern California.Operational IssuesThere is still a chassis shortageThe chassis rental system requires more time and moves per delivery, further reducing daily dray capacityNew Clean Air program requirements have reduced the number of available trucksDriver compensation has been reduced due to congestion, making hiring additional drivers difficult Lines at the port, on the train, and at the pickup points for chassisCarrier Issues⢠A 5% increase in volume due to larger vessels arriving with more cargo to load/unload at onceConfusion about where to pick up and deliver containers due to alliances delivering freight on terminals throughout the portDespite the coalitionâs efforts to reduce the amount of ships, they prefer to arrive all at once rather than over the course of a weekTerminal IssuesThe union is not providing enough crews to efficiently manage the larger vessels Worker productivity in terms of containers handled per hour has reduced dramatically Restricted gate hoursThe union is fighting automation of port tasks because it threatens worker jobsThe union is conducting additional safety checks on vehicles and chassis arriving at the port, which slows down the operation even furtherSteps to Take to Mitigate Port CongestionTo restore West Coast port efficiency, four major steps must be taken:The issue of labor must be resolved.A chassis âgray poolâ must be constructed.To enhance overall unloading/loading volume, the port must enhance dockside capacity.To transport vehicles through gates at a faster rate, automation must be used at all chokepoints.This congestion can be mitigated by accurate inventory management.
Inventory tracking and stock control allow you to readily notice sales trends, track recalled products, and track expiration dates.Planning for Seamless TransportationTo eliminate duplication and inefficiency, profile your companyâs global carriage activities across distinct trade lanes and strategic business units.
For West Coast port owners and the International Longshore and Warehouse Union, 2008 is a new contract year.The Impact of Supply Chain Management on the Port CongestionWithin global supply chains and global manufacturing networks, seaports serve as platforms.
As global trade patterns, consumer preferences, and improvements in supply chain management, material handling equipment and information technology alter, these supply networks become more dynamic.