West Coast Shipment Backlog
 

I haven't seen much commentary on this issue, but notice a lot of stuff missing from local shelves that should have arrived weeks if not months ago, and thought others might be interested in the perspective shared in these two recent articles. The fact that many aisles at Wal-Mart are blocked this week with pallets of new stock might be taken as a hopeful sign that the log jam is breaking. Regards

Growing Shipping Alliances Are Straining Major U.S. Gateway Ports (Wall Street Journal, 4-May)

"For years, the workhorse vessel that moved goods across the Pacific had a capacity to carry between 5,000 and 7,000 containers and it would take up to 10 hours to move a container from the port. But over the past couple of years, ships calling at West Coast ports have doubled in size. At the height of the peak period late last year the congestion was so severe that it would take up to eight days to move a container out of port and on to major importers of Asian goods such as Wal-Mart Inc., Home Depot Inc. and others.
...
California ports handle the largest share of cargo moved from and to Asia, everything from clothing and home appliances to toys, luxury goods and electronics coming in and packaged food, fresh produce and scrap metal going out. Peak periods include September and October when retailers prepare for the Christmas holidays and the first-quarter period before the Lunar New Year, when U.S. importers typically stock up for spring before Chinese factories shut down for up to two weeks.

Jon Slangerup, chief executive at the Port of Long Beach, says that as ships get bigger, they call to more ports in Asia where containers are loaded randomly, with little attention to the ownership of the containers or their final destination. When docking at multiple terminals at the West Coast, unloading the ships is also done randomly, straining port operators and truckers as they try to figure out which box goes where."

Port Progress (National Retail Federation, 12-May)

"While the labor dispute at West Coast ports is officially over, it’s still not clear sailing. The slowdown was one of the worst in recent history. Retailers missed shipments of holiday merchandise, U.S. factories closed for lack of imported parts and agricultural exports rotted on the docks. Port officials estimate that it will take until sometime this month to work through the backlog of shipments, and the tentative contract agreement is subject to a ratification vote before it becomes final. Retailers may feel the impact through much of 2015: Consulting firm Kurt Salmon projects the slowdown could cost the industry $7 billion."

Container shipping trouble continues. If you wonder why some new products seem to be taking their sweet time arriving, wonder no longer:

The Ghost Ships of Hanjin and Why They're Spoiling Christmas (Bloomberg, 8-Sept) <-- Nice video summary

Hanjin’s bankruptcy is just one of the world’s shipping woes (SF Chronicle, 7-Sept)

Hanjin Shipping's collapse likely to hit Christmas shoppers, postage (CNBC, 7-Sep)
Hanjin Unloads More Cargo, Easing Supply-Chain Fears (WSJ, 19-Sept)
Stormy Seas Ahead For Shippers Following Hanjin’s Bankruptcy (Oilprice.com, 16-Sept)
Hanjin Chair Says Shipping Company Lost a ‘Game of Chicken’ With Competitors (Fortune, 4-Oct)
Several ships are sitting at anchor off the Port of Vancouver. Local charities like Salvation Army have been delivering food.

This situation seems likely to worsen, as debt continues to soar, capital is in retreat, international tensions grow, policymakers cling to ideology and serve political objectives, and economies suffer.