Again, the problem, like the overall economy, is highly complex. The vessels are taking an average of 7 days to unload because:
a. There is a backlog which is getting worse because there are a lot of vessels with cargo waiting to be unloaded at ports that were already stretched to capacity.
b. As vessels are delayed at their previous port of call their window to dock is closed or pushed forward.
c. There are so many in-bound containers that the ports are running out of places to put them or they're being put in wrong locations causing them to go "missing" in their inventory system.
d. The ports are now running late night shifts to pull containers but many business or warehouses aren't open to receive them.
e. That means in turn truckers have to pre-pull containers and bring them to a secure yard for temporary storage.
f. Meaning that the importers are then faced to pay staff of workes over time rates to unload at night or pre-pull charges and further per-diem charges if the empty containers are not brought back in time.
g. Not to mention that most of the ports have a dire lack of chassis or chassis that are in poor condition, meaning that often even when containers are available, and there are drivers ready and willing to pull them, there are not enough empty chassis to load containers onto.
h. The ports are so overloaded and containers are being stored where they are difficult to get to, meaning truckers are sometimes waiting 5+ hours at the ports to pull containers. (Many of these drivers are being paid PER delivery and not by the hour. So a driver that used to pull and make 3 local deliveries per day can now only pull one, MAYBE two and is earning a lot less). So a lot of drivers are quitting the container racket.
i. There is a lack of drivers, specifically container drayers, because NOBODY wants to do that job, for all of the aforementioned reasons.
And I saw this article the other day which I found shocking (although, not REALLY shocking).
Truckers can't work because they can't pass a P-test
The lack of automation, poor long term strategic planning, union cronyism with the ILA labor, has hurt most ports in the United States over the last 30+ years. But it's more apparent at times like these. Think of container logiisitics it like the baggage collection system at a major airport. It's never great. But then you have a dozen planes all land at once and it's chaos with bags falling off and clogging the conveyor.
The thing is, a lot of the main stream media is focused on the ports of Los Angeles and Long Beach. Probably because combined together, they represent almost 40% of the in-bound container traffic to the US. But the ports of Oakland, Tacoma, Houston, New Orleans, Miami, Charleston, Norfolk & New York, ALL have huge issues and are suffering backlogs.
And then you have tools like this...
Come to Texas...
Poor Greg. Imagine being so out of touch that you don't even realize the 3rd biggest cargo port in the US (Houston) is currently so overloaded and over stretched that a lot of local container carriers in the port of Houston are telling their customers that there's a 3 week waiting list to pull containers. By which time, the importer will be responsible for thousands of dollars in demurrage.
www.cnbc.com
