2021 saw a record number of 20-foot containers come through the Port of Los Angeles according to CNN. In total, 10.7 million containers passed through Los Angeles, an increase of 13% from the previous record which was set in 2018. For one and half years now, the Port of Los Angeles has been receiving around 900,000 container units monthly, significantly higher than pre-pandemic. Executive Director of the Port of Los Angeles, Gene Seroka said he doesn’t expect things to slow down. Seroka commented, “I don’t see the American consumer changing their buying habits.” Despite record volume, the Ports of Los Angeles and Long Beach have been able to change the scene outside the ports, now with just around 4 ships at anchor outside of Los Angeles and around 10 outside of Long Beach. This difference is due to “port optimization” according to Seroka, as now around 45 ships, around 150 miles off coast are slowly making their way to the Port of Los Angeles instead of all gathering just outside of the ports.
On January 10, the California Governor, Galvin Newsom announced the 2022-2023 state budget proposal and it includes a record investment of $2.3 billion for California Ports. The plan includes $1.2 billion for port infrastructure and goods movement, $875 million for zero-emission port equipment and infrastructure, $110 million for workforce training, $40 million for commercial driver licenses, and $30 million for operational and process improvements. In a press release from ShopEatSurf, Gene Seroka said, “I applaud Gov. Newsom for meeting the moment with bold leadership.”
Across the Pacific Ocean, the short-term outlook for the global supply chain is uncertain as trucking restrictions as an outbreak of COVID cases near one of the world’s largest ports, Ningbo is threatening to slow down activity. Bloomberg reports that these strict controls on trucks moving goods into the area may cost the economy $4 billion a week. Maersk, a leading global container company released an update on the Port of Ningbo situation on Monday, January 10.
According to Drewry’s composite World Container Index, spot rates for 40-foot containers slightly increased the week of January 6 compared to the previous week. The 1% increase is modest but shows that over the past couple of months, the rates have remained consistent, and this also being consistently higher than pre-pandemic. The only major East-West route that saw a weekly decrease in spot freight rates was Los Angeles to Shanghai at a 1% drop. Meanwhile, Shanghai to Los Angeles and Shanghai to New York jumped up 3% each, and New York to Rotterdam saw the highest increase at 5%.
On January 10, the California Governor, Galvin Newsom announced the 2022-2023 state budget proposal and it includes a record investment of $2.3 billion for California Ports. The plan includes $1.2 billion for port infrastructure and goods movement, $875 million for zero-emission port equipment and infrastructure, $110 million for workforce training, $40 million for commercial driver licenses, and $30 million for operational and process improvements. In a press release from ShopEatSurf, Gene Seroka said, “I applaud Gov. Newsom for meeting the moment with bold leadership.”
Across the Pacific Ocean, the short-term outlook for the global supply chain is uncertain as trucking restrictions as an outbreak of COVID cases near one of the world’s largest ports, Ningbo is threatening to slow down activity. Bloomberg reports that these strict controls on trucks moving goods into the area may cost the economy $4 billion a week. Maersk, a leading global container company released an update on the Port of Ningbo situation on Monday, January 10.
According to Drewry’s composite World Container Index, spot rates for 40-foot containers slightly increased the week of January 6 compared to the previous week. The 1% increase is modest but shows that over the past couple of months, the rates have remained consistent, and this also being consistently higher than pre-pandemic. The only major East-West route that saw a weekly decrease in spot freight rates was Los Angeles to Shanghai at a 1% drop. Meanwhile, Shanghai to Los Angeles and Shanghai to New York jumped up 3% each, and New York to Rotterdam saw the highest increase at 5%.
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