North America Container Ship Traffic Jam Tightens, Threatening to Push Inflation Higher

Anonymous 08/02/22 (Tue) 11:53:19 d72d9f (2) No.16949181

North America Container Ship Traffic Jam Tightens, Threatening to Push Inflation Higher Port congestion in North America worsened in late July compared with a month ago, with traffic having shifted from the West Coast to the East Coast. On July 28, there were 153 ships waiting offshore at various ports across North America, a significant jump from 92 vessels on June 10, according to data by American Shipper. The previous seven weeks saw the North American container ship queue jump by 66 percent. The rising congestion has triggered worries about a potential spike in shipping rates, which would push up decades-high consumer inflation. The Savannah, Georgia, port accounted for 43 of the 153 ships, followed by 26 in Los Angeles/Long Beach, 24 ships in Houston, 18 vessels in New York/New Jersey, 17 in Vancouver, British Columbia, 15 in Oakland, and 10 ships at other ports. The port congestion has halted falling spot shipping rates. Shipping rates for the China to East Coast route, for example, were hovering around the $10,000 level in late July, while the Europe to North America East Coast rate had jumped by 2 percent, to exceed $8,400. Though the rates are far from the $25,000 level seen during the height of the container congestion months ago, they indicate an inflationary pressure on supply chains, which can potentially push up prices of commodities and consumer products even higher. In an interview with American Shipper, Alan Baer, CEO of OL USA, said that the delays in U.S. ports are forcing vessels to return to Asia “out of position to fill their next scheduled inbound sailing.” “This will lead to a reduction of available capacity due to increased blank sailings, and ultimately higher transportation costs. Reduced volume may initially help to mute the upward price pressure; however, if we see volume increase, the availability of space will tighten quickly,” Baer said. More at: https://www.theepochtimes.com/north-america-container-ship-traffic-jam-tightens-threatening-to-push-inflation-higher_4637590.html?welcomeuser=1