By hannover-web.com Despite the resolution of the East Coast and Gulf port strikes, the combination of previous dock worker strike threats and ongoing Red Sea crisis challenges has led to a record increase in imports at West Coast ports. This surge has caused significant congestion in rail freight, resulting in mountains of holiday and everyday goods piling up, with containers awaiting rail transport experiencing delays that have more than doubled, potentially jeopardizing seasonal stocking efforts for importers.
According to CNBC, nearly half of the containers offloaded at the Port of Los Angeles, which are set to be transported by rail, are waiting over nine days to be loaded onto trains, compared to a previous wait time of just four days.
In September, the Port of Los Angeles handled a record 954,706 twenty-foot equivalent units (TEUs). Gene Seroka, the executive director of the port authority, noted that there are currently about 20,000 containers stuck in the port awaiting transport. He emphasized that while there is congestion in rail transport, it has not adversely affected shipping or truck transport operations.
Seroka highlighted three key factors that could impact future container volume growth and port capacity: the earlier timing of this year’s Lunar New Year, the upcoming U.S. presidential election, and the robust state of the economy. “October’s import volumes are expected to remain strong, and we haven’t seen any signs of decline, with estimates of around 850,000 TEUs,” he said. Importers are looking to avoid disruptions that might arise from potential post-election tariff increases and declining unemployment rates.
The Port of Long Beach also reported impressive figures, with a total of 829,400 TEUs handled in September, marking four consecutive months of container volumes exceeding last year’s levels. Mario Cordero, the executive director, mentioned that the average waiting time for containers is currently seven days, with no visible congestion in the port. “In the past three months, the volume of containers moving through the port has reached new highs, and rail operations are now under scrutiny. Port operations are smooth, and the existing capacity can accommodate further record volumes,” he added. Rail volumes through the docks have increased by approximately 26%.
The National Retail Federation (NRF) CEO, Matthew Shay, anticipates that freight volumes will remain strong through the end of the year. Bill of lading data reveals that from September 1 to October 14, the Port of Los Angeles received a wide variety of goods, including holiday decorations, string lights, Christmas trees, candles, candle holders, nutcrackers, and wreaths. Notable importers include Home Depot, Target, and Walmart, along with 92 containers filled with 1,840 solar panels ordered from BYD in China.
A spokesperson for Union Pacific, a major rail operator, stated that the increase in container volumes has impacted operations, and they are using various resources to manage the double-digit percentage rise in international transshipment through both Los Angeles and Long Beach. “We continue to see goods originally destined for the East Coast being rerouted here, and we are working closely with our customers to ensure the smooth flow of freight,” he noted.
Logistics managers indicated that the time from unloading to loading onto trains takes about two weeks, with some unique cases extending to four weeks. Given that the East Coast strike issues remain unresolved, it is expected that transshipment volumes will continue to flow to the West Coast.
