Last week, a huge container ship closed the Suez Canal for days and caused billions of dollars in damage. Now, history seems to be repeating itself with another ship – this time baring the waters of Southern California. Could this new event be more destructive than its predecessor? Here we know everything that is about the horrific event so far.
What happened in southern california?
Twenty-four container ships were waiting for spaces in the ports of Los Angeles and Long Beach, according to the Southern California Marine Exchange. These ships were carrying products worth millions of dollars, including washing machines, consumer electronics, medical equipment, and other goods.
But these ships are stuck in a traffic jam, it does not seem that it will move any time soon, and as each day happens, the economy declines. One is on the twelfth day of their waiting, there will be no concept until they are on the move.
Port of Oakland spokesman Merlin Sandefur said the jam in Southern California’s ports is associated with increased spending. “The boom in e-commerce has greatly increased the amount of incoming cargo,” she said. “We’ve seen 20% more ships arrive in the last month, with more than six dozen ships in San Francisco Bay waiting to dock for seven days.”
When did these backups begin?
Although backups are currently in the limelight due to the Suez Canal crisis, they have actually been an issue since late summer of 2020. This issue only increased towards the end of the year, accordingly. Wall Street Journal, As manufacturers attempted to revive the markets that came during the COVID-19 epidemic.
Port of Long Beach executive director Mario Cordero explained the situation in January of 2021. “A large number of medical supplies come with furniture, appliances, construction materials, landscaping, hot tubs and anything related to the road. , “He said.” Those who have not been affected by the American Kovid will continue to spend and the increase may occur through late spring. “
Abbie Durkin, owner of Palmer and Purchase women’s clothing and accessories store, NY, explained what the issue is in the retailer’s favor. “For the last one year, all supply-chain problems are directly affecting us,” he said. “We had a popular sweater that we had already sold that was coming from a seller in Los Angeles that was imported from China and it never came up with the odds.”
Why are Southern California backups such a big deal?
Together, Los Angeles and Long Beach Ports handle more than a third of container imports in the US as global supply-chains, including Toyota Motor Corp., Honda Motor Company and Samsung Electronics Company, suffer a lot due to shipping hold-ups. Toyota and Honda recently announced that they would stop their North American productions for the moment.
A major issue according to the Pacific Merchant Shipping Association is that even after products are imported, they often have to wait five days until they are actually unloaded.
Is there an end in sight?
While many experts are looking to solve this problem, some are concerned that a spending trajectory will continue upward, and will subsequently lead to greater shipping backup.
Lars Jensen, chief executive of Copenhagen-based C-Continuation Consulting, said the new stimulus probe could lead to fuel fires. “The big question is”, he explained, “will Americans spend their new incentive checks? If they continue to buy goods instead of traveling or going out of restaurants, the bottlenecks may be worse.”