Pittsburgh

Dozens of ships holding $24 billion in goods float outside California’s biggest ports – Pittsburgh, Pennsylvania

Pittsburgh, Pennsylvania 2021-10-28 08:12:00 –

Extreme port congestion has been a major nuisance this year. Unfortunately, this could also be one of the biggest issues in 2022. Goldman Sachs warned clients in a note on Monday that backlog and shipping increases are likely to continue “at least” until mid-next year. Bank economists concluded in a research report. This is bad news for the economy and everyday Americans, as supply chain bottlenecks raise costs, delay shipments, and give shoppers fewer choices. Consumer Prices According to Adobe Analytics, the amount of products out of stock online has increased by 172% compared to January 2020. The most obvious evidence of a supply chain crisis is dozens of container ships awaiting unloading outside the Port of Los Angeles and Long Beach. Goldman Sachs estimates that there are astonishing $ 24 billion in goods outside these two ports alone, but once the ship is docked and unloadable, shipping containers will still stay in the port for a few days. I am. In September, about one-third of the shipping containers were Goldman Sachs, and the ports in Los Angeles and Long Beach were sitting for more than five days after getting off the ship, but in the low single digits before the pandemic. By comparison, earlier this month, the White House will move to Los Angeles, unions, and some major companies 24/7. Goldman Sachs said the transition “may help in margins,” but it also requires cooperation from other ports, truck drivers, rail operators and warehouses. And the biggest problem is the shortage of workers, including truck drivers, which is a broader problem beyond the ports of California. Goldman Sachs has found that nationwide, the time it takes for a loaded vessel to pass through a US port has tripled by historical standards. As a result, Goldman Sachs expects port congestion to be “slightly” eased in the coming months as the United States moves beyond its peak. Unless there is a “further shock” in the supply chain (such as a COVID-19 outbreak or lockdown), congestion should be “more meaningfully mitigated” after the Chinese New Year in February. “But congestion can continue to some extent until at least mid-next year, and analysts expect fares to be well above pre-pandemic levels, at least next year,” the Goldman Sachs report said. Stated. Analytics also warned last week that supply chain stress has increased and “there are no signs of calming down yet.” Earlier this month, Secretary of Transportation Pete Butigeg told CNN about US supply chain issues. The illness “certainly” will continue until 2022.

Extreme port congestion has been a major nuisance this year. Unfortunately, it could also be one of the biggest problems in 2022.

Backlog and increased shipping costs Goldman Sachs warned clients in a note on Monday that it is likely to last “at least” until mid-next year.

The bank’s economists concluded in a research report that “immediate solutions to the underlying supply-demand imbalance in US ports are not available.”

This is bad news for the economy and everyday Americans, as supply chain bottlenecks raise costs, delay shipments, and give shoppers fewer choices.

Consumer prices are rising At the fastest 12-month pace since 2008. Online out-of-stock is up 172% Compared to January 2020, according to Adobe Analytics.

The most obvious evidence of a supply chain crisis: Dozens of container ships floating outside the Port of Los Angeles and Long Beach are waiting to be unloaded. Goldman Sachs estimates that there are astonishing $ 24 billion in goods outside these two ports alone.

However, once the ship is docked and ready to unload, shipping containers are still moored in the port for days.

Goldman Sachs said in September that about one-third of its shipping containers in the ports of Los Angeles and Long Beach were more than five days off board, compared to the low single-digit rate before the pandemic. I found that I was sitting.

Earlier this month, the White House announced a commitment from the Port of Los Angeles, trade unions, and several major companies to move to 24/7 operations.

Goldman Sachs said the move “may help margins,” but said it also needed cooperation from other ports, truck drivers, railroad operators and warehouses. And the biggest problem is the shortage of workers, including truck drivers.

This is a broader issue beyond the ports of California. Goldman Sachs has found that nationwide, the time it takes for a loaded vessel to pass through a US port has tripled by historical standards.

As a result, Goldman Sachs expects port congestion to be “slightly” eased in the coming months as the United States exceeds its peak holiday-related shipping demand.

According to Goldman Sachs, congestion should be “more meaningfully eased” after the Chinese New Year in February, unless there are “further shocks” in the supply chain (such as the outbreak or blockage of COVID-19).

“But congestion can continue to some extent, at least until mid-next year, and our analysts expect fares to be significantly above pre-pandemic levels, at least next year,” the report concludes. Attached.

Moody’s Analytics warned as well last week Supply chain stress is rising “There are no signs of subsidence yet,” he said.

Secretary of Transportation earlier this month Pete Butigeg told CNN US supply chain problems will “certainly” continue until 2022.

Dozens of ships holding $24 billion in goods float outside California’s biggest ports Source link Dozens of ships holding $24 billion in goods float outside California’s biggest ports

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