Strong consumer demand has contributed to the port of Los Angeles setting new records in January. After a drop in volume in December, the Port of Los Angeles reports having its best January in its 115-year history. The port also reports clearing 21.4% more empty containers in January 2022 over January 2021. There’s good news out of Long Beach as well, with capacity opening up thanks to more dock space clearing as aged cargo is moved out. The Port of Long Beach Executive Director Mario Cordero stated in a press release that he expected progress to continue throughout the spring.
While Chinese New Year has come and gone, and port congestion has eased a bit in some places, backlogs and container shortages continue. Shanghai is still experiencing delays of about a week and the expectation in Ningbo is further delays in the coming weeks.
However, despite some easing in port congestion, queues continue to grow at several Asian ports with southern China seeing the biggest rises. The Hong Kong region has seen a jump from an average of 17.5 ships waiting in December to 22.5 in January of this year. Yantian is experiencing almost identical numbers.
Freighter conversion providers ramped up during the pandemic but there still aren’t enough cargo planes. Boeing has plans to expand its conversion capacity, but supply chain problems are a hindrance. In some ports, there’s a backlog of 9 to 10 months. The issue could worsen if aircraft production returns to pre-pandemic levels, as this would further strain supply chains.
Finally, an international group has formed, making use of the global intelligent networks that are part of the Five Eyes Intelligence Oversight and Review Council (FIORC). They’re launching an investigation into supply chains, looking for breaches of the law. The concern is that disruptions in the supply chain led to illegal or antitrust conduct. Prices around the world have spiked across the board and businesses are filing complaints about supply chains. The UK’s Competition and Markets Authority (CMA) admits that while price increases may be legitimate, they’re looking for evidence that collusion and antitrust activities are contributing to prices rising and remaining high—though none has yet to be found.
