CMA CGM has launched a new direct service from Asia to the Port of Oakland. Photo: Port of OaklandOne of the California ports impacted by the current container supply chain congestion is feeling the strain with both imports and exports down in January.
The Port of Oakland said containerised cargo volume import volume dropped 11.9% last month compared to January 2020. Exports were down 11.3%. The port expects container volume to increase in coming months as vessel logjams ease.
“There’s a lot of cargo trapped on ships just waiting to get to here after departing Southern California,” said Port of Oakland maritime director, Bryan Brandes. “Our concern is getting shipments to our customers as quickly as we can.”
Contributing factors to volume loss
The port attributed cargo declines to factors that included late-arriving ships from Southern California where up to 60 vessels are at anchor awaiting berth space; temporary loss of berth capacity at Oakland’s largest marine terminal where new cranes are being assembled; and dwindling vessel space for Oakland exports as ships carry more empty cargo containers back to Asia.
US containerized import volume from Asia is expected to remain strong at least through June. That puts pressure on ports in Los Angeles and Long Beach, where ships stop first before visiting Oakland.
Congestion in Southern California is causing delays of up to a week for Oakland vessel arrivals. As a result, ships reach the Port off-schedule and sometimes miss berthing appointments.
French shipping line CMA CGM remedied the problem this month by introducing a first-call service in Oakland. The ships in CMA’s weekly service make Oakland their first U.S call, bypassing Southern California. The Port said other ocean carriers are contemplating Oakland first-calls by mid-year.
Although imports and exports are down, overall container volume was off just 5.8% because the port had a 15.6% increase in the shipment of empty containers. Empties are in high demand at Asian ports where they are needed to transport US import cargo.
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February 25, 2021 at 01:51AM
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