California Docks are Making Significant Progress to Address Supply Chain Backlog, Port Chief Says

California Docks

The Port Chief of Long Beach expressed that the California Docks are making significant progress to address the backlog of cargo ships and containers.

Executive Director of the Port of Long Beach, Mario Cordero said, “I think we’re moving forward with some progress and hopefully, as we move into the next six months we’re going to continue to mitigate the scenario that we’re seeing here.”

Cordero expressed that the twin ports of Los Angeles and Long Beach, which account for approximately 40% of sea freight that enter in the USA are working to offload containers.

For addressing the backlog of container ships due to congestion caused in part by a global lockdown following the Covid-19 Pandemic, the twin California ports declared uncommon fees on shipping carriers.

The fines were declared in a joint statement by both port directors on Oct. 25. Carriers would have a time of nine days for moving containers on the dock by truck and six days of time if transporting by rail. After the stipulated time fines of $100 a day per container will start.

The fees are yet not imposed but since the declaration of the new fees, both ports have seen existing cargo containers decrease by 33%.

Cordero said, “There are still approximately 61 cargo ships off the California coast waiting to unload. That compares to a record 111 ships just two weeks ago, according to data from the Marine Exchange.”

Cordero added, “While ramping up operations has helped relieve the logjam at the nation’s busiest port complex, there are still other issues to address in the supply chain. A lasting solution would entail a real collaborative effort from truckers, marine terminal operators, warehouses, railroads and port authorities.”