Record number of container ships stranded off LA – economy

The Pacific sky offers a very special spectacle of colors in autumn; From light yellow to bright red to dark blue, all shades are visible at sunset. There are now fierce debates among photographers (hobby). Some want pure nature, then: sand, sea, sky; at most one Internet user can still be in the photo. Others don’t think man-made things are bad, that is, the pier, a lifeguard’s house, a sailboat. What everyone agrees on: Those damn container ships out there, they spoil every picture.

Admittedly, the photos are really the slightest problem, but it makes everyone understand what is happening off the California coast: almost 100 ships wait in the ocean every day to be processed in the ports of Los Angeles and Long. Beach. From above it looks like LA is under siege by sea, and in a way it is. Several factors, such as increased demand, production delays in Asia, increased transportation costs due to high fuel prices, the Covid pandemic, the US labor market, inflation and international trade agreements , make ports a funnel into which too much water is poured; the throat is blocked, someone is blocking the exit.

President Joe Biden wants people to work around the clock

Before the pandemic, around 20 ships were typically waiting on the California coast, there are now 100 with around 250,000 containers with components for cellphones or toys for Christmas business. Average wait time currently: two weeks – and it is said that the situation will only improve in the spring if something does not change quickly and seriously.

“We haven’t seen a traffic jam of this magnitude for a few years; but ports are only one part of a very complex chain, ”says Awi Federgruen, professor of economics at Columbia University Business School and expert in supply chain management. The situation is difficult to resolve because several factors must be taken into account, and this in an already delicate economic period because of the pandemic: “There will probably be enormous inflation on people; and some goods just won’t be for sale. “

Yes the situation is really so dire, in the meantime US President Joe Biden has stepped in and called for the job to be done around the clock – that’s easier said than done, you can’t not just talking about skilled workers. Biden also wants companies not to remove containers from the port by a certain time frame (nine days by truck, three days by train) of November 1 with $ 100 per container per day. As a final step, Biden reserves the right to dispatch the National Guard.

The demand for goods in the United States has grown extremely

The Los Angeles Long Beach complex is the ninth largest port in the world, 40 percent of U.S. imports by ship and 30 percent of exports are handled here. “These two ports are currently handling 19% more cargo than in 2018, which is a record so far,” said Biden spokeswoman Jen Psaki. In June, Los Angeles became the first port in the Western Hemisphere to handle more than ten million containers in twelve months; Long Beach is likely to create nine million containers this year and break last year’s record (8.1 million) – but it’s not going fast enough.

The location in the port symbolizes how everything relates to everything else. After last year’s spring slump due to the pandemic, the demand for goods in the United States has risen sharply; which was also due to the fact that people were spending less money on vacation or going to the movies because of the restrictions. Many of these goods come from Asia; In 2019, the United States imported $ 451.7 billion worth of goods from China; this year, according to the Federal Statistical Office, it should reach 500 billion dollars. So: far too much water is pouring into this funnel, according to Psaki, Biden wants to address supply chain issues from Asia at the G20 summit in Rome this weekend.

It is a problem; next: You can work around the clock to retrieve containers from ships – but what should you do if no one is retrieving them? “It appears that there is currently no one who wants to use the terminal window from three to eight in the morning,” said port spokesman Philipp Sanfield: “We are now ready to work around the clock. because we now have enough workers. ”What is missing: trucks and truck drivers. Companies compete for precisely those workers who a few years ago said that piloted driving would soon make them obsolete.

The many vessels off the coast are also a safety risk

This currently means: Logistics companies have to pay truck drivers about ten percent more than a year ago, and fuel prices in California have risen dramatically in recent months – to an average of $ 4.54. per gallon (3.79 liters); a 31 percent increase over the same month last year, the national average is $ 3.39. So the threat of harsh punishment by Biden is nothing more than an invitation to swallow the rising costs – what else can he do?

“It is not enough to reduce the handling time in the port by 25%,” says expert Federgruen. Several steps should be taken, such as companies like Walmart chartering their own ships with larger containers (there is also a shortage of 40ft containers) and getting them to San Diego, for example, for the holiday season. of the year and the even more significant “Black” Friday “(the Friday after Thanksgiving, on which Americans storm the now digital stores).

It’s about the US economy, but it’s about much more. 100 ships off the coast of California waiting to enter ports are also moving between oil platforms, pipelines and telecommunications cables to Asia. It is said that the anchor of a ship displaced a piece of pipeline 30 meters and caused a crack of more than 30 centimeters. This is perhaps the reason why 500,000 liters of oil spilled into the Pacific in early October. The final outcome of the investigation is still pending, the most likely explanation at this time is that an anchor stretched a pipeline like a bowstring.

Swift action is now required, from many sides – otherwise, not only in California, it’s much more ruined than a few sunset photos.

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The Pacific sky offers a very special spectacle of colors in autumn; From light yellow to bright red to dark blue, all shades are visible at sunset. There are now fierce debates among photographers (hobby). Some want pure nature, then: sand, sea, sky; at most one Internet user can still be in the photo. Others don’t think man-made things are bad, that is, the pier, a lifeguard’s house, a sailboat. What everyone agrees on: Those damn container ships out there, they spoil every picture.

Admittedly, the photos are really the slightest problem, but it makes everyone understand what is happening off the California coast: almost 100 ships wait in the ocean every day to be processed in the ports of Los Angeles and Long. Beach. From above it looks like LA is under siege by sea, and in a way it is. Several factors, for example increased demand, production delays in Asia, increased transportation costs due to high fuel prices, the Covid pandemic, the US labor market, inflation and international trade agreements are making challenges. ports a funnel into which too much water is dumped; the throat is blocked, someone is blocking the exit.

President Joe Biden wants people to work around the clock

Before the pandemic, around 20 ships were usually waiting on the California coast, there are now 100 with around 250,000 containers with components for cellphones or toys for Christmas business. Average wait time currently: two weeks – and it is said that the situation will only improve in the spring if something does not change quickly and seriously.

“We haven’t seen a traffic jam of this magnitude for a few years; but ports are only one part of a very complex chain, ”says Awi Federgruen, professor of economics at Columbia University Business School and expert in supply chain management. The situation is difficult to resolve because several factors must be taken into account, and this in an already delicate economic period because of the pandemic: “There will probably be enormous inflation on people; and some goods just won’t be for sale. “

Yes the situation is really so dire, in the meantime US President Joe Biden has stepped in and called for the job to be done around the clock – that’s easier said than done, you can’t not just talking about skilled workers. Biden also wants companies not to remove containers from the port by a certain time frame (nine days by truck, three days by train) of November 1 with $ 100 per container per day. As a final step, Biden reserves the right to dispatch the National Guard.

The demand for goods in the United States has grown extremely

The Los Angeles Long Beach complex is the ninth largest port in the world, 40 percent of U.S. imports by ship and 30 percent of exports are handled here. “These two ports are currently handling 19% more cargo than in 2018, which is a record so far,” said Biden spokeswoman Jen Psaki. In June, Los Angeles became the first port in the Western Hemisphere to handle more than ten million containers in twelve months; Long Beach is likely to create nine million containers this year and break last year’s record (8.1 million) – but it’s not going fast enough.

The location in the port symbolizes how everything relates to everything else. After last year’s spring slump due to the pandemic, the demand for goods in the United States has risen sharply; which was also due to the fact that people were spending less money on vacation or going to the movies because of the restrictions. Many of these goods come from Asia; In 2019, the United States imported $ 451.7 billion worth of goods from China; this year, according to the Federal Statistical Office, it should reach 500 billion dollars. So: far too much water is pouring into this funnel, according to Psaki, Biden wants to address supply chain issues from Asia at the G20 summit in Rome this weekend.

It is a problem; next: You can work around the clock to retrieve containers from ships – but what should you do if no one is retrieving them? “It appears that there is currently no one who wants to use the terminal window from three to eight in the morning,” said port spokesman Philipp Sanfield: “We are now ready to work around the clock. because we now have enough workers. ”What is missing: trucks and truck drivers. Companies compete for precisely those workers who a few years ago said that piloted driving would soon make them obsolete.

The many vessels off the coast are also a safety risk

This currently means: Logistics companies have to pay truck drivers about ten percent more than a year ago, and fuel prices in California have risen dramatically in recent months – to an average of $ 4.54. per gallon (3.79 liters); a 31 percent increase over the same month last year, the national average is $ 3.39. So the threat of harsh punishment by Biden is nothing more than an invitation to swallow the rising costs – what else can he do?

“It is not enough to reduce the handling time in the port by 25%,” says expert Federgruen. Several steps should be taken, such as companies like Walmart chartering their own ships with larger containers (there is also a shortage of 40ft containers) and getting them to San Diego, for example, for the holiday season. of the year and the even more significant “Black” Friday “(the Friday after Thanksgiving, on which Americans storm the now digital stores).

It’s about the US economy, but it’s about much more. 100 ships off the coast of California waiting to enter ports are also moving between oil platforms, pipelines and telecommunications cables to Asia. It is said that the anchor of a ship displaced a piece of pipeline 30 meters and caused a crack of more than 30 centimeters. This is perhaps the reason why 500,000 liters of oil spilled into the Pacific in early October. The final outcome of the investigation is still pending, the most likely explanation at this time is that an anchor stretched a pipeline like a bowstring.

Swift action is now required, from many sides – otherwise, not only in California, it’s much more ruined than a few sunset photos.

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