How much does it cost to have a container choked at Long Beach?

We are all familiar with the port crisis the US is facing due to the pandemic. Supply chains are struggling to meet the demand of the market. The question is, when will the crisis be solved?

The answer is that this wasn’t a crisis caused exclusively by the pandemic. For years there were warnings about the need to improve port infrastructure to increase its capacity.

By the time the time the pandemic hit there was only a 5% margin of spare capacity due to years of inadequate investment. This situation is widely debated as more problems are exposed amidst this crisis. 

Although there is a special task force from the White House appointed to solve the issue and they are taking actions such as allowing the port to operate 24 hours, the truth is that a solution is far from sight.

But what does it mean for shipping companies and merchants? Unfortunately, delays cost money, and as of November 15, shipping companies will be charged $100 per container per day until the cargo moves.

The objective is not to make money but to speed up the clearing of port space because the waiting times doubled caused by an import surge. Consumers increased demand, as they couldn’t do other activities during the pandemic. 

Undoubtedly, the highest cost merchants face is to wait up to 75 days to get goods to their consumers. If we add the shipping costs, the taxes, fines, and other expenses, businesses are hit hard.

Faced with this scenario, new route alternatives must be considered. For example, if the cargo gets to the port of Manzanillo in Mexico and is then transported in trucks by land using a company such as WH Logistics, it can reach its destination in fifteen days, not in 75. 

This alternative might seem complicated and expensive, but when all is added together it actually represents significant savings.

Industry experts believe that the situation won’t get back to normal for at least a year so shipping to Manzanillo makes sense in the long term, merchandises can get to the consumers on time. 

WH Logistics has the necessary infrastructure to get your shipments from Asia on time and at reduced cost when compared to all the necessary fares and cost of shipping to California.

Source:

https://www.charlotteobserver.com/news/nation-world/national/article255404706.html

https://www.bbc.com/news/58926842