COVID-19 strikes manufacturing supply chains again as Vietnam experiences the highest number of positive coronavirus cases the nation has seen since the pandemic’s first wave. This news comes at a time when Canada Border Service Agency (CBSA) officers and customs officials are going on strike while wildfires in California and Oregon are forcing portions of Union Pacific and BNSF’s rail lines to close.
The ports of Los Angeles and Long Beach are also starting to notice excessive vessel bunching, rising equipment shortages, and lengthier dwell times matching 2020 peak season levels as a result of the delays in Yantian. With the scramble for capacity intensifying, the demand for new containers is soaring, causing prices to skyrocket despite inventory levels remaining relatively low.
According to the Drewry World Container Index, “the average price to ship an FEU from Shanghai to Los Angeles reached $10,503 this week” shortly before ocean liners prepare to roll out another round of surcharges for shippers. This kind of carrier pricing has recently come under fire as the U.S. government creates legislation to better regulate unreasonable detention and demurrage fees.
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