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(Trends Wide Business) — Approximately 200,000 shipping containers remained paralyzed off the coast of Los Angeles on Monday, as disruptions related to the pandemic continue to affect various supply chains, according to Gene Seroka, executive director of the Port of Los Angeles.
“We have about two weeks of anchored work right now,” Seroka said in an interview with Trends Wide’s Jake Tapper. “The question now is how do we segment this cargo.”
Alleviating the backlog is crucial during the final months of the year because retail items are in high demand as the holiday shopping begins, Seroka said. Auto parts are also being prioritized because US automakers and many Midwest suppliers are waiting for components so they can make their final products.
“We had 25% of all cargo on our dock here for 13 days or more [y] It was almost halved in the last week, “Seroka said.
Five days ago, President Biden announced that the Port of Los Angeles would be operating 24 hours a day, 7 days a week. While this has alleviated some of the congestion at the ports, Seroka said officials do not expect the import market to strengthen until February 2022.
“We have been shopping more than ever as American consumers and the retailers have really gone out of their way to keep up with the demand,” Seroka said. “The second quarter of next year will focus on replenishing this inventory.”
Around the world, ports are congested as a result of the rapid rebound in demand for commodities and goods, as much of the global economy has recovered from the pandemic. Shipping costs have skyrocketed and companies wanting to move goods are struggling because there simply aren’t enough ships or containers available. Meanwhile, prices are rising for consumers.
– Anneken Tappe contributes to this news.
