According to relevant data, due to the COVID-19 epidemic and labor shortage, the largest container port in the United States, Los Angeles (Los Angeles), has experienced serious ship congestion and cargo retention. Although the California government and maritime departments have taken relevant measures to solve this situation during the period, the effect is not obvious. At present, the backlog of containers in the Port of Los Angeles is still in a saturation state.
In order to alleviate the serious congestion of the port and enable the normal operation of the supply chain, the Port of Los Angeles announced in October this year that it would extend the working hours of port workers, and announced the operation model of continuous operation of 24 hours a day, and also impose fines for containers stranded at the dock for a long time.
These measures have been implemented for two months. On the surface, the number of ships and containers stranded in the port of Los Angeles has indeed decreased. However, industry insiders believe that according to the new regulations, freight ships should sail slowly when approaching ports and leave the coast at least fifty miles, so that the ships "can be dispersed and avoid crowding together."
It is reported that although the new regulations make the container ship team preparing to unload the goods not as many as before, in fact, the overall number of ships has not decreased.
According to statistics from the Los Angeles Maritime Department, there were as many as 101 cargo ships waiting for entry to the port on December 13 this year around the Port of Los Angeles and the Port of Long Beach (Hong Kong) on December 1, setting a record high. A large number of cargo ships are constantly coming in the waters. Normally, the sailing time from Asia to the Port of Los Angeles is about 14 to 17 working days, but now cargo ships often sail at sea for 30 days and still cannot dock.
Los Angeles Port recently stated that due to the sharp increase in consumer demand, Los Angeles Port is expected to import about 10.7 million TEU this year, 13% more than the highest record set in 2018. The Port of Los Angeles is expected to break a new record in cargo throughput in 2021, with processing volume exceeding any port in the Western Hemisphere.
Shipping analysts believe that although the Port of Los Angeles has launched an all-weather operation mode, it is not easy to realize the port.
The chaos in the shipping supply chain will continue until at least the end of next year
Evergreen shipping General Manager Xie Huiquan said at a press conference on the Taiwan Stock Exchange major information that in order to improve the efficiency of container loading and unloading at the West Coast terminal of the United States and in response to the needs of large-scale ship operations, two bridge cranes will be rented to reduce the impact of Serbia Port.
Xie Hui was interviewed after the plenary session and said that he would maintain his views on the Seychelles Port in August this year. The global shipping port in Serbia may continue until mid-next year, but Gene Seroka, executive director of the Port of Los Angeles, believes that the chaos in the shipping supply chain will continue until at least the end of next year; due to rising freight rates, the off-season in the fourth quarter is not light, and many shipping operators' performance in the fourth quarter may be stronger than the peak season in the third quarter.
He explained that the Port of Serbia caused a sharp increase in freight rates, but it also reduced voyages, delayed cargo transportation and reduced volume. Because revenue depends on freight price and freight volume, as long as freight price is high and the volume decreases not much, revenue can remain high; on the contrary, if the volume decreases too much, revenue may decline.
He emphasized that the proportion of Evergreen in the United States is high, so he obtained the right to use the leased assets from its 100% stake in Everport Terminal Services (ETS) from its related Evergreen Shipping Agency (America) Corporation (EGA).
Xie Huiquan said that the main business of the subsidiary ETS is to provide container loading and unloading services at the West Coast Terminal in the United States. Based on the company's long-term operation plan at the Los Angeles Terminal, it plans to renew the lease of 4 bridge cranes from its related person Evergreen America and increase the lease of 2 bridge cranes, totaling 6 machines to improve the loading and unloading efficiency of the terminal and meet the needs of large-scale ship operations.
