Holiday Rush Creates Congestion at West Coast Ports
The holiday season is in full swing, and the West Coast ports are feeling the pressure. Record imports over the past few months have led to congestion on the rails, with thousands of containers waiting to be loaded onto trains. At the Port of Los Angeles, almost half of the containers bound for freight rail are waiting nine days or more to get out of the port and onto the rail.
Rail Congestion a Growing Concern
Executive Director Gene Seroka says the rail congestion is not impacting port operations, but it’s still a major concern. “We want to make sure we improve on all port operations. The railroads continue to be our focal point,” he notes. With 20,000 rail containers sitting at the port waiting to be loaded out, Seroka is working closely with the railroads to reduce dwell times.
Multiple Factors Contributing to Congestion
Several factors are contributing to the congestion, including the early Lunar New Year, the U.S. presidential election, and the strength of the economy. According to Seroka, October is shaping up to be another strong month, with no signs of a pullback. “We see no precipitous signs of a pullback. We are looking at the mid-800-thousand [TEU] range,” he says.
Port of Long Beach Also Feeling the Pressure
At the Port of Long Beach, rail dwell times for containers are seven days, but Executive Director Mario Cordero says the port is not experiencing congestion. “Given our historic number of TEUs moving through [the Port of Long Beach] for the last three months, the current rail dwell is not of immediate concern,” he notes.
Retailers Bracing for Impact
The National Retail Federation expects robust holiday sales, with winter holiday spending projected to grow between 2.5% and 3.5% over 2023. Matt Shay, CEO of the National Retail Federation, says retailers are working to get their cargo as quickly as possible. “We recognize there has been a significant increase in import volume through the ports over the past few months,” he notes.
Logistics Managers Scramble to Keep Up
Logistics managers are working overtime to keep up with the demand. Paul Brashier, global logistics vice president of ITS Logistics, says his company is avoiding potential rail issues at the port as much as possible. “With no final resolution to the ILA strike and Red Sea conflict, we expect diversion volumes to continue,” he notes.
Alternative Strategies Being Considered
Goetz Alebrand, head of ocean freight Americas for DHL Global Forwarding, says the extended dwell time at the West Coast ports is a concern for many customers. “The primary factor contributing to this issue is the insufficient supply of rail cars returning to the West Coast,” he notes. Alebrand advises clients to consider alternative strategies, such as rerouting cargo to the East Coast ports.
A Complex Issue with No Easy Solution
The congestion at the West Coast ports is a complex issue with no easy solution. With multiple factors contributing to the problem, it will take a concerted effort from all stakeholders to resolve the issue and keep the supply chain moving smoothly. As the holiday season heats up, one thing is clear: the West Coast ports will be put to the test like never before.
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