Before anyone gets too excited about 2021 being over, 2022 is gearing up for more of the same old, according to an article from the JOC. The perfect storm that US West Coast ports saw last year, with high container volumes matched with a breakdown in both vessel and rail services, may be a repeat for 2022. While a slight improvement is expected in on-time vessel arrivals, schedule reliability still won’t be anywhere near historical levels.
In related news for some retailers, rail cargo carriers on the US West Coast are facing an additional threat. Thieves have been raiding containers aboard trains in the downtown Los Angeles area. They’re going through delivery packages from Amazon, UPS, REI, and others, looking for valuable items. Union Pacific has increased patrols through the area.
To the east, Omicron continues its march through China, with the port city of Dalian being the latest hit. Between COVID and the upcoming Chinese New Year, forwarders are warning of further shipping delays. As of this writing, the outbreak hasn’t hit port operations, but it is growing in nearby towns, specifically Tianjin, where companies have had to suspend production. So far, the Port of Tianjin remains open, but restrictions on truck drivers are causing delays.
China is now facing the highest number of COVID cases since March 2020. There is a glimmer of good news, however. Ningbo, home to one of the largest container ports in the world, has been in partial lockdown since the beginning of the year, but restrictions are starting to lift.
Finally, a dwell fee program instituted against the ports of Los Angeles and Long Beach, California, has been extended to April 29. The fee was approved in October 2020 but never implemented. Apparently, the threat of the fee was enough to get containers sitting for more than nine days moving. However, despite a 55% decline in aging cargo, there’s still a chance implementing the fee will get the go-ahead on January 21.
For the rest of this week’s top news, check out the article highlights below.
