Backorders caused by ship bottleneck
Kyodo News reports that there are now 44 large container ships stuck off the coast of California
- The record amount of ships stuck is worsening shipping delays and costs
- The backup is caused by labor shortage, COVID-19 related disruptions, and holiday buying surges
- Port of Los Angeles now has average wait time of 7.6 days to unload ships
- Transit times from Shanghai, China to Chicago, IL has more than doubled from 35 days to 73 days
- Shipping container freight rates increased 351% to $9,817.72 per square foot
- The world’s biggest port in terms of cargo tonnage, Ningbo-Zhoushan Port of China, locked down on 8/11/2021 due to COVID-19 outbreak, and reopened on 8/25/2021
o Average container prices in China ports increased 180% to $15,336.00 per
square foot
o China produces 96% of the world’s dry cargo containers
o The China International Marine Containers Group (CIMC) reported a 1739% in
net profit to $678 million