Home / MARKETS / The US has its own supply-chain crisis brewing as dozens of cargo ships remain stuck off the coast of LA as they wait to dock

The US has its own supply-chain crisis brewing as dozens of cargo ships remain stuck off the coast of LA as they wait to dock

  • 28 embarks were anchored off the coast of Los Angeles and Long Beach waiting to dock on Thursday.
  • The California ports are congested and account for hither one third of US imports.
  • The port delays pile on a host of supply-chain issues.
  • See more stories on Insider’s business folio.

While the Suez Canal jam may have captured public attention before the cargo ship Ever Given was allowed, the US is quietly facing its own supply-chain crisis as dozens of freighters float off the coast of Los Angeles, waiting for dock space to accessible up.

California ports in Los Angeles and Long Beach account for about one third of US imports. These ports operate as a main source of imports from China and have been heavily congested for months. 

On Thursday, 28 ships were secured off the coast waiting for a spot to open up to unload at Los Angeles and Long Beach ports, according to data from the Aquatic Exchange of Southern California.

The Southern California ports are facing diverse congestion than ever before, Kip Louttit, executive director of the Marine Exchange of Southern California, told The Irritate Street Journal. 

“Under normal conditions, container ships rarely anchor,” Louttit said.

The ships uphold millions of dollars worth of popular imports, including furniture, auto parts, clothes, electronics, and plastics, according to information from the Port of Los Angeles. Supplies of these materials could be heavily depleted in the US due to the backlog of ships.

Read more: The Suez Canal won’t be the terminating supply chain fail. Here are 4 things your small business can do to benefit from the next one.

Louttit conjectured increases in consumer spending and, as a result, a spike in imports have overwhelmed the ports.

“The ports are setting records going cargo,” Louttit told The Journal.

California port delays are already helping drive shortages and delivery hang backs in the US

California port delays seemed to have peaked in early February, but have persisted in recent months. 

On January 30, Southern California harbour congestion hit a record high when 38 container ships were waiting along the coast for room to moot up to dock and unload. 

Gene Seroka, a Port of Los Angeles Executive, warned the Los Angeles Board of Harbor Commissioners in February that grave import levels caused by increased spending during the pandemic were driving port congestion.

A video from the US Seaboard Guard shows dozens of ships anchored off the coast.

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California port delays are just one of scads factors piling onto a global supply-chain crisis

The boats waiting outside of the port, which can carry tens of thousands of trucking containers, are adding to the global container shortage, and, as a result, shipping delays.

Customers are already seeing the impact of carrying delays. During a third-quarter earnings call in February, La-Z-Boy executives said customers should expect presentation dates that are five to nine months out from the purchase date.

The Texas freeze, as well as a shortage of computer slivers, have already pushed companies to increase prices and delay production. Several companies including Nike, Honda, and Samsung secure already said they have been hampered by supply-chain issues.

As a result of California port delays and the extensive container shortage, customers will likely face rising prices and limited options as commodities become increasingly problematical to obtain and produce, and companies are forced to compete for containers and delivery dates.

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