There have been reports of global ports getting congested, thanks to unprecedented shipping volume. Earlier in March this year, we saw massive container ships sitting pretty in the San Francisco Bay outside Port of Oakland, San Francisco. According to The Wall Street Journal, newly arriving container ships are constantly adding to the already record-breaking flotilla sitting idle and waiting for their cargoes to be unloaded. The gradually expanding fleet has resulted in delays and disruptions adversely impacting global supply chains.
Sailing around the bottleneck in the Californian ports had become impossible. Massive container ships are joining the bottleneck because shipping lines and all their cargo clients have hardly any option to reset innumerable supply chains bringing goods to the United States. We understand that the San Pedro Bay gateway was staggered because of the incredible demand for imports. However, before the pandemic, we never saw more than a single ship waiting for a berth.
The clogging has impacted even the Port of San Francisco that is supposed to be a semi-independent organization. It is responsible for taking care of the port facilities and management at San Francisco in California, U.S.A. The Port manages the larger waterfront region, extending from the Golden Gate Bridge anchorage. It continues all along with the Marine District around the east and north shores of San Francisco city.
Reasons for the San Francisco Bay Congestion
Because of the global pandemic, there has been a sharp rise in online shopping. As a result, there has been a dramatic boost in international shipping to cater to the overwhelming orders. The massive demand has been responsible for triggering log jams at not only Californian ports but all global ports. During the lockdown and social distancing, factories in China had closed down. They are now operating in full swing, and Americans are going crazy shopping. The container vessels are constantly delivering stuff for replenishing retailers’ stocks.
Thanks to the COVID-19 global pandemic, people were compelled to follow home isolation and social distancing dictates. Lockdown made things even worse. More and more people were working from home and spending more time within the confines of their homes. Shopping online was their only pastime, and they were practically shopping like crazy as per experts. Incredible amounts of consumer products were manufactured, including household items, gadgets, and computers. Asian factories are constantly shipping products in record amounts for replenishing assembly lines and store shelves. E-commerce distributors, manufacturers, and retailers are all responsible for driving the surge.
People Who Stand to Lose Because of Clogging & Disruption
· Organizations that have paid record-high rates but had no clue when their shipment will arrive.
· Consumers who seem to be expecting e-commerce to speed up their deliveries without additional costs.
· Carriers that have had record profits and are expecting to gain more profits provided their container vessels are on schedule.
For a long-lasting and effective solution to the congestion issue, all parties involved in the supply chains should take an active part in solving the issue and avoiding port congestion. Rail operators, truckers, shipping lines, port authorities, IT specialists, and logistics service providers; everyone should get involved in the process and take proactive steps. Customers of every port should be capable of forecasting and maintaining their volume commitments so that the ports can effectively plan their specific capacity requirements.