Congestion at U.S. Ports Temporarily Improves Broadcast Article
Congestion at U.S. Ports Temporarily Improves Broadcast Article
Over the past few days, U.S. port congestion numbers have remained low after hitting record highs earlier this year. However, these improvements may be temporary.
According to HellenicShippingNews, the drop in queues at the port could represent “final easing of Covid-19-era congestion as inflation persists” or it could simply be “relative pre-peak season after the Shanghai lockdown storm.” calm".
S&P Global Commodity Insights said "this appears to be a much-needed respite for some ports that have experienced significant delays so far this year" and Flexport recognizes that "congestion is easing in some areas" but recommends Importers "use the space currently available".
On the one hand, data from the Marine Exchange of Southern California showed a shortage of ships waiting at the ports of Los Angeles and Long Beach last week, the lowest level since July 28, 2021, and well below what was observed on January 9. A peak of 109 ships.
Some experts believe that part of the reason for the drop in waits is that ships are being diverted to east coast ports. However, marine traffic data confirmed positive improvements. Only 45 container ships were waiting outside East Coast and Gulf ports in mid-May, compared with 70 in late February.
Although congestion has also eased in Virginia, South Carolina, and Charleston, the number of container ships has grown to 58 in the past few days, with a large proportion of waiting ships at the ports of New York/New Jersey and Savannah, 17 each. ships and 25.
On the other hand, Sea-Intelligence said the improvement may be temporary, as capacity on the trans-Pacific route increased by 21% from the week of May 15 to 21 to this week. Vessels from overseas ports this week will arrive at the end of June
What's more, last year the L.A./Long Beach queues fell in the third week of June, then reversed, and rose since then, so the same could happen again.
In addition, Asia-West Coast prices appear to have stabilized at higher levels, at least temporarily, after their recent sharp declines. The Asia-West Coast 2023 futures contract is currently trading above current prices at $11,500 per FEU.
