Port congestion eases in Asia, but U.S. situation expected to worsen

Port congestion eases in Asia, but U.S. situation expected to worsen - report

Port congestion eases in Asia, but U.S. situation expected to worsen - report

Asia’s largest ports are showing signs that congestion is easing ahead of the holiday season, a potentially positive step for key trade gateways in the U.S. that are still battling an influx of imports, Bloomberg reports.

Total traffic in Shanghai-Ningbo declined by 0.2% from the previous week and Hong Kong-Shenzhen’s ship count dropped 10.4%, according to an analysis of data by Bloomberg News. Singapore, Asia’s third-largest trade hub, saw a week-on-week drop of 14.7% as a backlog visible since early November looked to be largely cleared.

The same can’t be said yet across the Pacific, as queues of vessels remained elevated in Los Angeles and Long Beach, California. Congestion levels at those neighboring ports rose 6.7% from the prior week.

As of early Friday, at least 75 container ships were waiting for berth space to offload after politicians toured the ports two days ago, touting a 32% drop in the number of containers sitting on the docks for more than nine days.

The handoff between land and sea remains an issue for America’s largest container hub, as logistics operators on the ground are not picking up their containers quickly enough, and a steady stream of ships arrives to drop off more.

The White House said in a blog post on Wednesday that the number of containers sitting at the Los Angeles and Long Beach ports for more than nine days fell to 87,000 in the week ended Nov. 15, compared with 127,000 on Nov. 1.

Still, analysts were reluctant to call the worst of the global supply snarls over. 

“The odds remain stacked towards a worsening before it gets better,” Lars Jensen, CEO of Vespucci Maritime in Copenhagen, said in an email on Friday. 

In late September, Maersk released a logistics update saying it expected port congestion to persist until at least the end of the year.

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