Los Angeles and Long Beach ports will likely stay congested until summer
According to JOC the recent congestion that has affected almost every sector of the international supply chain is unlikely to decrease before summer. Industry sources said that many metrics have plateaued, suggesting that conditions are not currently worsening. However, cargo volumes did not decline in February as terminal operators had hoped and the ports are struggling to manage so many factors at once as they also try to prepare for peak season.
“How long the congestion continues will depend largely on import volumes between now and the beginning of the peak season in August. Weekly import volumes so far this year are “30 to 40 percent higher” than what the port was handling in 2019 and previous years, said Gene Seroka, executive director of the Port of Los Angeles.”
According to a recent report, by 2025 the US may require up to 1 billion square feet of new warehouse space
AMA Research released their “Global Warehousing Space Leasing Market Report,” a research study that analyzes key factors and trends in the current warehouse market. The study also seeks to forecast future needs and market progress for the next few years.
“This Research Report Conducts an assessment of the industry chain supporting this market. It also provides accurate information on various aspects of this market, such as production capacity, available production capacity utilization, industrial policies affecting the manufacturing chain and market growth.”
Parcel industry sources discuss the lasting effects of COVID-19 on shippers
According to a roundtable discussion held by Logistics Management, the parcel industry will need to continue to adapt and expand to manage the continued surge in e-commerce activity. Rates, pricing, capacity, and logistics will all likely suffer long-term effects from the increased demands in shipping experienced during the pandemic.
“In short, the parcel capacity crunch has led to a difficult pricing environment for shippers, especially those with residential profiles. It’s critical for shippers to be managing risk and diversifying their logistics options more than ever as carriers are exercising leverage and maximizing profits in the current environment.”
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