Supply disruption ‘until 2023’

This is the latest analysis from the container logistic operating platform which adds that the US is also facing major trucking issues making cargo movement within the country difficult.

“What is happening in the US is that there is already congestion, like every year, because it is the peak shipping season, and everyone is trying to make sure that retailers have enough inventory on the shelves for the upcoming holiday and Christmas season,” said Christian Roeloffs, cofounder and chief executive, Container xChange.

“The US West coast labour negotiations due to which many freight forwarders rerouted the cargo to the US East Coast have now caused congestion on the US East coast too.

“Hinterland complications like acute shortage of truckers and rail delays are adding to the woes. Empty containers piling up at the depots in the US and containers stuck on the sea will contribute to capacity being tied up.”

Whilst average container prices are declining worldwide, ports in the US are seeing a rise with average prices for containers of all types increasing from US$2116 in July to US$2214 in August.

“We do expect to see a rise in the prices in the coming weeks,” continued Christian Roeloff.

Container Availability Index at record highs

While globally the supply chain disruptions are slowly easing, there is still no sure end to shipping troubles in sight, says Christian Roeloff. In week 35, US ports including Houston, Oakland, New York City, Savannah, Long Beach, and Los Angeles retained their high CAx scores (above 0.80) from last month, meaning that more containers are arriving than leaving.

“The lockdowns in China will further make the situation difficult for shippers and freight forwarders to move the cargo from China to the US. [There is] much chaos on the cards coming this winter,” concluded Christian Roeloff.