Status: 10/14/2021 9:57 a.m.
Ships from Asia are stowed off the west coast of the USA, and half a million containers are waiting to be processed. Therefore, the port of Los Angeles is to be operated around the clock in the future.
The global bottlenecks in goods and raw materials of all kinds are also noticeable in the USA. Numerous ships with around half a million containers on board are currently waiting for handling off the American west coast. Government officials have already warned of rising prices and empty shelves in the run-up to Christmas. To solve the problem, the government, supermarket chains such as Walmart and parcel services such as FedEx and UPS have decided to undertake an unprecedented feat: According to this, the port of Los Angeles, where the ships from Asia arrive, will in future be operated 24 hours a day.
“We’re working around the clock to move more goods faster and strengthen our supply chains,” said US President Joe Biden. By opening seven days a week, night and weekends, the Port of Los Angeles will be open for more than 60 additional hours a week, Biden said. The neighboring port of Long Beach is already operating continuously.
Walmart employees should also work longer
The two ports are the largest in the United States. The backlog is to be reduced with the continuous operation of the two ports. “I know you hear a lot about so-called supply chains and how difficult it is to get a range of things – from toasters to sneakers to bicycles and bedroom furniture,” said Biden. He understands that this worries many people. However, the extension of working hours and the ramping up of capacities in the ports are only a first step. Other private market participants would now have to follow suit. “It’s called ‘supply chain’ for a reason.”
As a result, many employees at large retailers and supermarket chains such as Walmart also have to adjust to longer working hours. The companies have agreed to work outside of their peak hours to unload or transport the goods. “The commitments made today are a sign of great progress and that goods are getting from manufacturers to your stores or to your home,” said Biden. However, it cannot be guaranteed that all goods ordered will be delivered in time for Christmas, added a White House spokesman.
Hans-Jörg Heims, press spokesman for the port operator HHLA, on the container jams in European ports
Morning magazine, October 14, 2021
Fashion companies in trouble
Delivery bottlenecks and rising freight costs are also putting fashion companies that rely on fast fashion in a mess. Especially with goods from Asia it stagnates. “Most brands are currently struggling to know when goods will be delivered and when things could go wrong and how that will work out,” says one expert, describing the uncertainty in the industry. There is no short-term remedy in sight.
At the end of September, the Swedish fashion chain H&M reported bottlenecks in production and logistics. Group boss Helena Helmersson said the situation was improving on the supplier side, but she expected further delays in the current quarter. Nike CFO Matt Friend said delivery times from Asia to the US have doubled to 80 days in the past month. Abercrombie & Fitch, Boohoo and ASOS also complained about delivery problems and higher raw material prices.
Confidence in the UK
Meanwhile, the British government is spreading confidence. Conservative Party Secretary General Oliver Dowden was convinced that the gifts would arrive in time for the festival. “I’m confident that people will get their toys for Christmas,” he told Sky TV. The situation is increasingly easing in the port of Felixtowe, through which 36 percent of the country’s container freight is handled. The shortage of truck drivers is global and not a problem in Great Britain alone.
Maersk, the world’s largest container shipping company, apparently disagrees. It has diverted some ships from the port of Felixstowe in the east of England because there were problems with the removal of goods in the port due to the acute shortage of truck drivers. Great Britain has been fighting supply bottlenecks for weeks. Johnson had admitted that Britain’s exit from the EU had created tension in the supply chain and the workforce.