China’s COVID Lockdowns Further Disrupt Global Supply Chains

A surge in Omicron variant infections has prompted Chinese authorities to lock down residents, close factories and stop truck traffic, snarling already frayed supply chains. As officials scramble to contain the country’s worst outbreak of Covid-19 since early 2020, they are imposing lockdowns and restrictions that are adding chaos to global supply chains.

The measures in China, home to about one-third of global manufacturing, are disrupting the production of finished goods. Trucks are being delayed by the testing of drivers. Container rates are rising as ships wait for many hours at ports and products are piling up in warehouses.

Please feel free to review the below graphic for Chinese Province updates.

Unprecedented challenges are all-encompassing, affecting ports, carriers, railroads, and trucking throughout the United States. As the front-line representative of your supply chain, please be assured that we will do our very best to help your business successfully navigate through this difficult period.
If you have any questions, don’t hesitate to contact us.

Terminal Congestion and Import Service Delays

As we are sure you are aware, many importers (and exporters!) are experiencing continued and growing supply chain challenges.  Persistent port and rail ramp congestion, container chassis shortages, excessive detention and demurrage fees from carriers, and upheaval among air cargo service providers are all contributing to this mess. As a client or associate of WB Skinner, we want to keep you informed of the current situation and provide you with the following updates. Terminal Delays Most terminals are experiencing moderate to severe congestion issues and delays. Unprecedented high volumes essentially everywhere, critical labor and equipment shortages, and reduction in yard space and downstream warehousing capacity are all contributing to this backup.
  • On the East Coast, NY/NJ vessels are averaging wait times of up to two days, while Savannah can expect delays of 2-4 days and the remainder of the East Coast Ports project delays from four to as long as 16 days.
  • West Coast vessel arrival waiting times range between 26-38 days. Imports into smaller ports such as Seattle and Oakland should expect delays from 3-15 days.
  • In the Gulf, Houston wait times are up to 10 days, and can be further compounded by weather events.
Warehouse and Storage Capacity While the log jams at West Coast ports have gotten much media attention, a glut of containers is stacking up at the ports, indicative of one of the newest struggles in our supply chain. For the year to August, imports at the port of New York and New Jersey were 26.4 per cent higher than for the same period in 2020. The warehouses where those container loads would normally head first before being distributed are struggling to meet the unprecedented demand. According to the Financial Times, warehouse operators problems are compounded as they face shortages of everything they need to run their facilities efficiently, from racks and balers to forklift trucks and staff. Equipment Shortages Unprecedented chassis shortages continue in essentially all major terminals, including New York/New Jersey, Los Angeles/Long Beach, Philadelphia, St. Louis, Columbus, Cleveland, Chicago, Memphis, Atlanta, Nashville, and Louisville. Additional equipment availability remains an issue at Atlanta, Chicago, Cincinnati, Columbus, Detroit, Kansas City, Minneapolis, Memphis, Nashville, Omaha, St. Louis, South Florida, and Seattle. WB Skinner at Your Side Unprecedented challenges are all-encompassing, affecting ports, carriers, railroads, and trucking throughout the United States. As the front-line representative of your supply chain, please be assured that we will do our very best to help your business successfully navigate through this difficult period. If you have any questions, don’t hesitate to contact us.

Supply Chain Update: Dwindling Warehouse Space

While the log jams at west cost ports has gotten much media attention, a glut of containers is stacking up at the Port of New York and New Jersey, indicative of one of the newest struggles in our supply chain. Rebounding consumer demand has led to record imports through US ports on both coasts and strained every link in the supply chain, including warehouse space.

For the year to August, imports at the port of New York and New Jersey were 26.4 per cent higher than for the same period in 2020. The warehouses where those container loads would normally head first before being distributed are struggling to meet the unprecedented demand.

According to the Financial Times, warehouse operators problems are compounded as they face shortages of everything they need to run their facilities efficiently, from racks and balers to forklift trucks and staff. This equipment is caught in the same shipping delays as other imports.

Since our company operates in the middle of the supply chain, on your behalf, we must contend with untangling these persistent transportation logistics challenges the best we can. WB Skinner is leveraging our decades of experience and industry relationships to help meet clients’ needs for temporary warehousing and distribution of merchandise on the east coast.

We also offer our New York and New Jersey area importers a unique container strip and ship service. We unload the merchandise from the container, separate and load the cartons or drums onto new pallets by batch number, and shrink wrap it. Once it is all shrink wrapped, we arrange for a trucker to pick it up and schedule a delivery to your customer’s loading dock.

We are continuing to monitor these updates and doing our utmost to overcome these hurdles by communicating our collective frustrations to the nation’s container ports and carriers, as well as to the U.S. Federal Maritime Commission, which has taken great interest in this matter. Collectively, our goal, like yours, is to find a quick and sensible resolution to our nation’s troubled supply chain.