In an op-ed in the Washington Post Daniel Yergin and Peter Tirschwell explain what it will take to end the supply chain snarl-up:
The causes of this maelstrom are deeper-seated than any 90-day cure can address. During the pandemic, locked-down consumers, unable to go to stores, switched to e-commerce. Four to six years of anticipated e-commerce growth has been compressed into one year. All those personal computers, toys, power tools and Pelotons are typically shipped via container, mainly from Asia. Shipments into the United States surged.
The causes of this maelstrom are deeper-seated than any 90-day cure can address. During the pandemic, locked-down consumers, unable to go to stores, switched to e-commerce. Four to six years of anticipated e-commerce growth has been compressed into one year. All those personal computers, toys, power tools and Pelotons are typically shipped via container, mainly from Asia. Shipments into the United States surged.
What would need to happen to change the situation?
Distribution centers would need to be open 24/7 to receive trucks, but the centers typically are not. Expanding port hours accomplishes little if the truckers can’t drop off containers at distributions centers that are not open at night.
The continuing disruption is generating various legislative proposals, but they can’t address the sources of the imbalance. Lasting solutions instead must come from two elusive things: “more†and “less.â€
More as in more workers — not a simple fix, because a shortfall in workers is bedeviling the entire U.S. economy.
Less as in an easing of consumer demand. That would relieve pressure on the entire system and help return it to balance.
That sounds a lot like the “lower your expectations” advice that’s been widely scoffed at.
I would add that “more workers” sounds a lot easier than it actually is. A “longshoreman” in the Port of Los Angeles or Port of Long Beach (those account for half of U. S. merchandise imports) is not a guy with a cargo hook. He (or she) is a highly-skilled operator of one of the largest robots in the world. Think the kaiju in the movie Pacific Rim and you’ve pretty much got it. They earn upwards of $100K per year and it takes years of training.
About 30 years ago I recall sitting in the boardroom of a major New York bank and being informed by top management that they had no intention of automating some of their processes because that made you dependent on the more skilled employees that requires. That’s one of the things that’s causing our present problems—we’re dependent on people with skills and experience who belong to a notoriously protective union.
With respect to long haul truckers, not only are the hours, working conditions, and pay lousy but I suspect it’s getting harder to find people who don’t test positive for drug use every year.
Meanwhile in China they actually have fully automated “lights out” ports. We should, too, but that will provoke an incredible battle.
In general, I do not see why buying online would cause a problem. Delivering a product to a house rather than a store should not cause a container problem.
Compared to pre-COVID hysteria:
Are there less containers per day unloaded?
Are there less containers loaded onto trucks or rail cars per day?
Are there fewer workers?
Are there fewer truckers?
Are there fewer trucks or rail cars available?
The CA diesel engine regulations could be affecting the truck distribution and/or density per area. So, it is also possible that there are less (or more) trucks to service the Savannah port, and trucking routes would likely be affected, for better or worse.
(With fewer trucks available, is CA in-state truck based distribution worse?)
If this is a backlog issue, it will pass. The overall supply chain disruptions are the new normal, and most likely, it has a long way to go.
Yes, fewer containers per day are being unloaded than last year at this time.
Ah yes, the last longshoremen the last of the Wobblies, expect them to bend only after getting another pound of heart flesh from the shippers.
Supposedly there’s an 80,000 shortage of truck drivers. Also, CA is now saying trucks have to be no older than 3 years because of emission issues. Most trucks are independently operated, so this new regulation is going to cause further problems. Then you add in Biden’s mindless vaccine mandates undercutting employment even more…..what’s the point of trying to solve supply chain slow-downs, causing product shortages, when we have a federal government too busy destroying our economy?!
Supposedly US ports and first-tier transport systems are near the bottom in terms of efficiency compared to other 1st world countries.
That wouldn’t be surprising. EVERYTHING costs more here and takes longer. Roads, bridges, etc. cost more to build here per foot than in any other OECD country.