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Holiday shopping went well, so you might assume supply chains are fixed. At a quick glance, supply chains have healed and shopping seems back to normal. Supply chains are running much more smoothly than they have in more than two years right now. A major indicator that supply chains have been off balance is the inventory-to-sales ratio, which is tracked by the US Census Bureau. A return to seasonal rushes and lulls, without massive, global disruptions, will be the sign that supply chains are "back to normal."
According to ITS Logistics which monitors rail cargo trends, the volume of freight moving out of the East Coast doubles that of the West Coast. East Coast ports making major investments East Coast ports like Georgia, Virginia and Maryland have been increasing their investment to accommodate the increase in rail capacity. "CSX continues to see the East Coast ports as a growth opportunity as volumes shift from congested West coast gateways," said Cindy Schild, CSX spokesperson. West Coast port declinewatch nowCargo volumes on the West Coast remained soft at the Port of Los Angeles in November, which saw a 21% decrease year over year in volumes. While the East Coast gains are significant, there was a "leveling" off of imports detected on the East Coast in November, according to port TEU data from the CNBC Supply Chain Heat Map.
Abercrombie & Fitch Co. is moving more merchandise through New York and New Jersey to avoid West Coast bottlenecks. It trailed its East Coast rival again in that measure during September and October, according to the Pacific Merchant Shipping Association and ports data. ”There are so many customers that got so screwed because they were entirely reliant on L.A. and Long Beach.”The logistical challenges of spreading imports along the East Coast and the Gulf Coast are massive. The shift in trade to the East Coast marks a return to where container ships originated. Then the U.S. began importing more goods from Europe, making an Atlantic Ocean crossing to various East Coast ports more critical.
Since August, imports into the two major West Coast ports – Los Angeles and Long Beach – have declined. That cargo is now flowing into Gulf Coast ports like Savannah and New Orleans, and East Coast ports in New York and New Jersey. Around 20,000 dockworkers at West Coast ports, including Los Angeles and Long Beach, have been working without a contract since July 1. The jam at the West Coast ports delayed Americans getting goods and sent prices higher as demand outpaced supply. But until the labor dispute is resolved on the West Coast, it will be a challenge to lure importers back.
Earlier this week, the Port of Los Angeles posted its lowest level of October since 2009. "Firstly, shippers are still avoiding the West Coast to mitigate the risk of labor strikes at LA and Long Beach. According to Project44 data, total vessel TEU capacity deployed from Europe to the East Coast is up 15.5% compared to Oct 2021. CNBC Supply Chain Heat Map providers warned in the summer and fall of a decrease in manufacturing orders which has impacted the volume of shipping. The lesser container volumes are now being seen off the ports across the East Coast, including New York and New Jersey.
Imports into the nation’s busiest container port complex in Southern California are plummeting as U.S. trade sputters and retailers and manufacturers shift their supply chains amid increasingly contentious West Coast port labor negotiations. Importers have said they are avoiding West Coast ports because previous contract talks have turned contentious and led to cargo slowdowns. Over the past few months, several West Coast ports have experienced sporadic work disruptions, although port officials say overall container movements remain steady. The declines are a contrast to East Coast ports that continue to see strong cargo volumes. That has also contributed to the recent decline in cargo volumes during what is normally a peak season for ocean shipping.
Union vs. Union Dispute Stalls West Coast Port Labor Talks
  + stars: | 2022-11-08 | by ( Paul Berger | ) www.wsj.com   time to read: +4 min
A dispute between two unions over which workers get certain jobs at a cargo-handling terminal at the Port of Seattle is holding up labor talks between West Coast dockworkers and their employers. West Coast port labor talks are often fraught. Importers are already diverting some goods to Gulf Coast and East Coast ports because of the risk of labor strife. The port talks are taking place against a backdrop of global freight labor unrest. West Coast dockworkers have been working without a contract since the most recent labor agreement expired in early July.
The previous monthly data was the first time New York topped the West Coast and was being watched as a tipping point. Fears of a strike among West Coast port workers is one of the primary reasons behind the coastal shift in trade to the U.S. The freight railroads have shifted with the port trade trends as the East Coast has gained. "We expect the East Coast trend to continue, and our railroad is ready to deliver for more than half of the country's consumers and manufacturers," he said. As more trade has moved east, port congestion has come with it.
Tensions are rising in West Coast port labor battles as unions and port management trade accusations about worker productivity and the awarding of job assignments. Jerome Roberts, GVP of marketing at supply chain consulting company Blume Global, told CNBC the one shift protest had no lasting productivity impact. Logistics companies fear the latest round of accusations will only increase tensions for a supply chain and national port infrastructure already dealing with multiple labor concerns. Project44, which also collects and analyzes port productivity for the CNBC Supply Chain Heat Map, has tracked some recent issues at Seattle operations. Container dwell times at the Port of Oakland have been improving over the month of September, according to Josh Brazil, vice president of supply chain insights at Project44.
Port Labor Talks Stall as Worker Disruptions Grow
  + stars: | 2022-09-19 | by ( Paul Berger | ) www.wsj.com   time to read: +5 min
West Coast port labor talks are stalled as dockworker disputes hit the region’s big trade gateways, according to shipping industry officials who fear the negotiations could take months to resolve. “What you are starting to hear is people are losing faith,” said one shipping industry official. In August 40,000 containers were diverted from the Port of Los Angeles to the neighboring Port of Long Beach because of one labor dispute. The concerns over the progress of the talks comes as labor disputes around the U.S. are growing. Shipping industry officials say they also want the government to get more involved in the port labor talks.
West Coast Port Labor Contract Talks Remain in Limbo
  + stars: | 2022-07-01 | by ( Paul Berger | ) www.wsj.com   time to read: +3 min
Long-stalled West Coast port labor talks are showing no signs of progress, according to people familiar with the negotiations, extending uncertainty for U.S. retailers who rely on the coast to import goods from Asia. Some importers have been diverting furniture, clothes and electronics to East Coast and Gulf Coast ports in case the labor talks break down and lead to work disruptions or a strike. He said many retailers will likely plan to continue diverting goods to Gulf Coast and East Coast ports until they can be sure an agreement can be reached. There has been little impact on cargo operations at the ports during the contract talks beyond sporadic work disruptions at container terminals in Los Angeles and in Washington. People familiar with the talks say the sides are hung up on issues related to work in Seattle.
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