There’s more bad news out of Shanghai as a new omicron variant spreads. While the port is still operating, productivity has dropped because of a lack of dockworkers who are facing stay-at-home restrictions. The Shanghai International Port Group (SIPG) is trying to downplay the situation by pointing out that berthing times are better than they were in 2021, however, many in the industry feel that the real problem is the lack of trucking capacity. Air cargo is also being severely impacted by cancellations and delays.
On the US West Coast, ports and terminal operators have been anxiously awaiting better times but that may not be what’s on the horizon. Container dwell times are ramping back up and the Port of Long Beach is in danger of running out of room for incoming shipments. Part of the problem is an increase in imports coupled with a lack of availability of chassis at major rail hubs in the interior.
Moving to the East Coast, the stability of the trans-Atlantic trade route is also suffering thanks to scheduling problems and congestion. Higher import demand and ongoing congestion at West Coast ports on top of the recent COVID-19 lockdowns in China continue to exacerbate the problem.
For some good news, the funding for port infrastructure redevelopment promised by the Biden administration is ready to spend. Port leaders say they’re focused on plans to rebuild and upgrade their facilities, enabling them to handle the record numbers of containers their ports are now dealing with.
In a sign that things, in general, are moving in the right direction for railroads, some carriers have announced expanded services while also working to resolve disputes with Amtrac to bring more efficiency to the flow of goods via rail around the US. One clear lesson of the past two years is how important railroads are to this recovery.
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