Container xChange, a leading neutral online platform for container logistics, has released data on inbound and outbound container activity at the US West Coast ports of Los Angeles and Long Beach. The findings reveal a surge in demand as retailers increase inventory ahead of the holiday season.
Dr. Johannes Schlingmeier, Co-founder and CEO of Container xChange, stated, “Our Container Availability Index (CAx) data shows a 60% increase in the inbound-to-outbound container ratio at US West Coast ports. This surpasses pre-COVID levels, signaling excessive stress on the ports and pointing to further congestion in the months leading up to the holidays.”
Christian Roeloffs, Co-founder and CEO of Container xChange, added, “The unprecedented cargo congestion at these ports stems from global supply chain disruptions and their cascading effects. Rising imports driven by increased demand, combined with infrastructure and workforce challenges, are exacerbating delays in vessel arrivals.”
Roeloffs also noted that the peak shipping months could bring additional challenges, including higher demurrage and detention charges, elevated spot rates, surcharges, and intermodal delays. “These issues are unlikely to resolve quickly, with congestion extending beyond the holiday season,” he warned.
Key Findings from CAx Data
- In August 2021, CAx values at the Port of Los Angeles increased by an average of 60% compared to the same period in 2020.
- The CAx for 20-foot (20DC) and 40-foot (40DC) containers at the port reached 0.88 and 0.90, respectively, the highest levels recorded in three years. A CAx above 0.50 indicates a surplus of inbound containers, highlighting the imbalance.
The year-on-year trends demonstrate that inbound containers at the Port of Los Angeles significantly outpaced outbound shipments, reflecting a surge in imports as retailers prepare for the holiday season.
As the industry faces ongoing logistics bottlenecks, delays in shipments—and potentially holiday gifts—are inevitable. Consumers and businesses are advised to plan shipments well in advance, even if it means incurring higher costs.