The shipping situation continues to put a strain on the global supply chain as congestion in many ports around the world is still elevated. Port of Los Angeles Executive Director Gene Seroka announced that the month of January was yet another record month for the port. According to the Los Angeles Business Journal, the Port of LA processed 865,595 twenty-foot equivalent units during the first month of 2022, which was 3.6% higher than the same period in 2021. The record was attributed to an early lunar year in China which began on February 1.
Despite almost nonstop coverage of the congestion in US ports, the backlog continues to grow in various European ports. In a Bloomberg article, it was reported that according to a heat map constructed by Flexport, six of ten European ports including Rotterdam, Hamburg, and the United Kingdom’s Felixstowe were considered orange, which ranks second-worst on the heat map. The article also touched on data that showed that the average shipment delay from China to the US West Coast had increased 114% in 2021 compared to a year earlier. For the European route, there was a 172% rise.
Looking to China’s ports, as per a report from Global Times, the port in Hong Kong is experiencing a severe COVID-19 outbreak and as a result, major port Shenzhen has opened waterway transport channels to ensure that supplies, including daily necessities, are able to reach Hong Kong.
According to Drewry’s World Container Index, throughout the month of February, spot rates among some the world’s largest routes have remained stagnant overall. Despite not increasing, the rates are still significantly higher than one year ago.