Skip to content
Search AI Powered

Latest Stories

West coast ports announce fourth attempt to clear container backlog

Initiative would shift inventory to Utah for inland transport, following other plans to charge carriers for slow box moves, stack containers in higher piles, and run ports 24/7.

ports-Screen-Shot-2021-10-28-at-12.39.14-PM.png

Supply chain executives at the ports of Los Angeles and Long Beach have unveiled three new measures in recent days to clear the epic container backlog on their shores, as scores of containerships continued to languish in the waters off the California coast just weeks before the winter holidays.

The moves come shortly after the Biden Administration announced a plan to solve the same problem by moving those two ports toward 24/7 operations, a move that industry analysts said may provide some temporary relief but will likely not provide a long-term fix.


Last week, the city of Long Beach tried to address a different part of the puzzle by issuing a temporary, 90-day waiver of its rule that containers could be stacked only two units high during storage. By allowing the boxes to be piled four or five levels high, the plan could help workers to move more containers off the ships floating offshore, according to published reports.

Then on Monday, the twin ports said they would increase the pressure on companies to move their inventory off the dock by assessing a surcharge to ocean carriers for import containers that dwell too long on marine terminals. The ports will now charge carriers a daily fee for every truck-bound container dwelling nine days or more and for every rail-bound container that has dwelled for three days or more.

“We must expedite the movement of cargo through the ports to work down the number of ships at anchor,” Port of Los Angeles Executive Director Gene Seroka said in a release. “Approximately 40% of the containers on our terminals today fall into the two categories. If we can clear this idling cargo, we’ll have much more space on our terminals to accept empties, handle exports, and improve fluidity for the wide range of cargo owners who utilize our ports.”

And on Wednesday, the Port of Long Beach announced a separate plan to move many of those lingering containers off the docks by shifting them to Utah through a deal with the Utah Inland Port Authority (UIPA) and Union Pacific Railroad. That move is intended to bring rapid relief from existing port congestion by optimizing rail deliveries between the two states 

“The direct, regularly scheduled rail service connecting the Port of Long Beach to Salt Lake City will allow cargo destined for all of the Intermountain West to be rapidly evacuated from terminals in Long Beach to Salt Lake City for further distribution throughout the region,” according to a joint statement by executive directors Mario Cordero of the Port of Long Beach and Jack Hedge of the Utah Inland Port Authority. “Much of this cargo traditionally moves to Utah, Colorado, Nevada, and Idaho by truck, and thus must be removed from the port terminals one container at a time. Reengaging this direct rail service will allow removal of blocks of containers at a time.”

However, some industry experts were skeptical that the plans would have much impact, saying that without adding extra trucks to move the stalled containers, isolated plans like the detention fees would merely impose an added burden, likely to be passed on to shippers by ocean carriers.

“While the underlying principle of this measure reflects initiative on the part of the ports, we believe that there are many layers to this problem which will need attention from all decision makers and stakeholders,” Johannes Schlingmeier, co-founder and CEO of the German container logistics platform Container xChange, said in a release.

“It is important to reflect on the problem of the record volume and congestion problem at these ports and identify who could possibly play a key role in reducing the congestion. The intermodal stakeholders like the truckers and rail transport play a vital role in delivering the boxes on time. As much as they are important to the situation, they are beyond the capacity and control of the carriers and these charges to the carriers will likely not increase trucking supply.”

The Latest

More Stories

person using AI at a laptop

Gartner: GenAI set to impact procurement processes

Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.

Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.

Keep ReadingShow less

Featured

Report: SMEs hopeful ahead of holiday peak

Report: SMEs hopeful ahead of holiday peak

Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.

That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.

Keep ReadingShow less
retail store tech AI zebra

Retailers plan tech investments to stop theft and loss

Eight in 10 retail associates are concerned about the lack of technology deployed to spot safety threats or criminal activity on the job, according to a report from Zebra Technologies Corp.

That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.

Keep ReadingShow less
warehouse automation systems

Cimcorp's new CEO sees growth in grocery and tire segments

Logistics automation systems integrator Cimcorp today named company insider Veli-Matti Hakala as its new CEO, saying he will cultivate growth in both the company and its clientele, specifically in the grocery retail and tire plant logistics sectors.

An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.

Keep ReadingShow less

Securing the last mile

Although many shoppers will return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.

One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.

Keep ReadingShow less