In recent days, container ships waiting for berths outside the ports of Los Angeles and Long Beach, California, have continued to set records, while dock workers have been knocked down by the Omicron strain .
As of the 12th, according to data from the Southern California Maritime Exchange, there are currently 103 ships anchored outside the two ports, only two less than the record 105 ships last Thursday (6th). China Business News reporter checked historical data and found that the number of ships waiting to be berthed during the same period last year was only about 30.
According to data from the Pacific Maritime Association, as of the 10th, about 800 dock workers were unable to work due to reasons related to the epidemic, which is one-tenth of the total daily workforce at the Ports of Los Angeles and Long Beach. These people have taken sick leave because they have tested positive, are isolating or awaiting test results, and are not feeling well.
"Mass sick leave" caused by Omicron
Data from the Pacific Maritime Association shows that the number of daily infections among dockworkers has risen rapidly in recent weeks, from a few cases per day to dozens, reaching about 150 per day last week. example.
According to the latest statistics on the COVID-19 epidemic released by Johns Hopkins University in the United States, as of the 12th, the cumulative number of confirmed cases of COVID-19 in Los Angeles, USA, exceeded 2 million, with more than 27,000 deaths.
According to foreign media reports, in the week ending January 8, Los Angeles County , where a large number of port workers live, was diagnosed with more than 200,000 cases in a week, setting a new record.
Under this circumstance, this week, the labor shortage faced by Los Angeles Port and Long Beach Port is very serious. On the 10th, two container ships encountered a serious shortage of dock workers when loading and unloading. The other 13 ships were even worse, with no dock workers coming to load and unload cargo.
Alan McCorkle, CEO of Yusen Terminals LLC at the Port of Los Angeles, said that the widespread spread of the epidemic has led to the expansion of worker shortages that began during the Christmas and New Year holidays, and the productivity of its operating terminals has been reduced by about 20%, extending Port time.
James McKenna, president of the Pacific Maritime Association, said that at West Coast ports, which are already facing import difficulties, 160 dockworkers tested positive last Wednesday alone. He said this number was compared to the actual number of absentees. It's an underestimate because hundreds of dockworkers are still staying home due to factors such as close contact and waiting for test results.
He predicted that because the Omicron strain is so transmissible, the ports of Los Angeles and Long Beach will once again have backlogs of ships. "The Omicron strain is a game changer," he said.
Will port congestion worsen further?
Consulting firm Sea-Intelligence said in a report sent to clients on the 10th that congestion problems at U.S. and European ports are worsening.
The Southern California port complex composed of the Port of Los Angeles and the Port of Long Beach is the gateway port for the United States to handle imported containers from Asia. The containers handled every year account for 40% of the total imported containers in the United States.
At the same time, due to the impact of the epidemic, the aggressive purchasing of American consumers has caused the container throughput of these two ports to reach a new high in 2021, soaring by about 20% compared with the pre-epidemic level in 2019.
The Biden administration has taken a series of measures in 2021 aimed at reducing the backlog, including efforts to move terminals to 24-hour operations and attempts to introduce measures to fine cargo owners for the backlog of containers. However, experts interviewed by China Business News reporters all pointed out that they were skeptical about the ability to implement policies for all-weather operations.
Han Jun, chief analyst of CITIC Construction Investment, told China Business News that before October last year, before U.S. President Biden met with port executives, the Port of Los Angeles and other places had been experimenting for a period of time, including opening up The reservation for the container truck failed in the end.
"I think these companies' response to Biden's initiative is more of a matter of appearance. From a practical point of view, they still need to solve the most basic operational problems, that is, they need enough manpower and enough equipment. And these manpower are still willing 24-hour operation is the most critical," Han Jun said.
At the same time, in terms of the policy of fining cargo owners, it is "big thunder but little rain" and has never been implemented.
Faced with the serious shortage of workers, Noel Hacegaba, deputy executive director of the Port of Long Beach, said in a statement that despite the increase in worker infections, the port terminal remains open and will extend service hours.
Hasegabo also pushed the issue of labor shortages to the Pacific Maritime Association in the statement.
Jim McKenna, chief executive of the terminal, said terminals might be able to handle some of the backlog if Asian factories reduce operations during the Lunar New Year period, which starts in a few weeks.
But he warned that some of the world's largest shipping companies in his association expected the surge in cargo to continue over the next six months and did not rule out that the situation could remain until the end of 2022.
Han Jun said that to improve the efficiency of the supply chain and solve supply-side bottlenecks, more people and equipment should be added. This has nothing to do with the epidemic.
“Originally, everyone thought that manpower would recover after the epidemic is over or they are vaccinated, but I think that even if they are vaccinated, those workers will not necessarily return to their previous jobs, because the job opportunities in the transportation and warehousing industry are already relatively low compared to other industries. There is not enough competitiveness.” He believes that some endogenous and structural problems in the United States are the key, such as workers’ employment willingness and workers’ security issues.
"From the supply side, first of all, truck drivers and dock workers are actually technical jobs. They cannot be hired by just picking up people on the street. This industry has certain technical thresholds and barriers. Second, in the short term, We cannot expect that there will be enough people willing to cross this technical threshold, such as taking the corresponding qualification certificate." He explained that after the epidemic, many people's employment intentions have changed, or they have put forward more requirements for work status. Therefore, to solve this problem, we do not need to think about the logic of supply-side improvement. This is an unsolvable situation in the short term.
"From the demand side, unless the demand in the United States plummets, and it must be sluggish for two consecutive months or more, then as time goes by, the import of goods decreases, and the amount of congestion becomes less and less, the problem will "Eased." Han Jun said that in other words, counting on the supply side is unrealistic, and counting on reduced demand in the United States is the most realistic way.
