Sea ports are closed or operating at 40 – 60 percent capacity, a truck driver shortage of 80,000 drivers. Rising fuel cost, rising labor cost, sky rocking cost of new replacement transportation vehicles. Forced closures of container storage areas and closure of warehouses (Biden, governors and mayors lock-down mandates.) Most experts in the transportation industry do not see conditions improving for months or possibility years.
Ports in Asia and Europe are not fairing any better than American ports. This is compounding the shipping problem by causing a shortage of available ships, trucks, rail cars and shipping containers at manufacturing businesses world wide.
When Donald Trump was president October 2020, the price to ship a 40 foot container from Asia to California was $3,800. That price under Biden’s administration cost spiked to $17,000 per-container in October of 2021, according to supply chain technology company Freightos.
Freightos said that shipping a container to the east coast is more expensive than the west coast, with rates reaching $20,000.
More than 100 ships were reported this week to be anchored off the coast of California waiting their turn to dock and unload full containers. But the seaports are stocked so high that ports are forcing vessels to wait up to 1 month before unloading.
As many as 200,000 40 foot shipping containers are stranded off the coast waiting to dock in Los Angeles.
Los Angeles had nearly 500 thousand 20-foot shipping containers, about 12 million metric tons of goods waiting in drift areas and at anchor for spots to open up along the port to dock and unload, according to the Marine Exchange of Southern California’s master queuing list.
The effect of rising fuel costs, a large container vessel used in Trans-Pacific trade, with an actual, maximum container capacity of 3,875 FEUs (forty foot containers.)
With the cost of bunker fuel at $552 per ton, and with fuel consumption of 217 tons per day, a 28-day round trip voyage for this one vessel would produce a fuel bill of $3,353,952. This cost does not include the daily cost of operating/maintaining the ship and it’s crew.
Biden administration, Governors and Mayors forced coronavirus lock-downs has had a tremendous negative impact on the transportation industry nationwide, causing headaches at sea ports, warehouses, railways, and trucking companies.
Will history books record 1816, the year Without A Summer and 2022 the year America Did Without everything?