As companies return to work from the holidays, major delays at U.S. ports around the country continue to cause supply chain headaches. This persistent port and rail ramp congestion and container chassis shortages were a problem heading into the new year, and there seems to be no end in sight. The excessive detention and demurrage fees from ocean carriers has led to higher overall costs for routing shipments through the nation’s congested seaports, airports, and rail ramps.
And worse yet, the higher costs are compounded with multi-week delays. One of the nation’s busiest ports, the Los Angeles/Long Beach port, reportedly had nearly 40 vessels docked outside waiting to be unloaded at the start of the new year. COVID concerns have most certainly added to delays, as steamship staff are working from home and labor shortages plague both the ports and the trucking industries. In the worst cases, some are even reporting containers are being lost by the carriers and terminals.
So, what can you do to mitigate these problems? Keep in mind that these challenges are all encompassing, affecting ports, carriers, railroads, and truckers throughout the United States. The best thing you can do is plan for a significant delay in materials primarily sourced from overseas. Analyze you supply chain and supplement with domestically manufactured products where possible, but keep in mind that increased demand can cause capacity crunches on these manufacturers too. Best practices include monitoring your inventory levels closely and placing purchase orders with vendors well in advance to keep things moving. While you may not be able to avoid the logistical delay, you can be prepared and plan for it.