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Esteemed Contributor
Posts: 5,880
Registered: ‎03-10-2010

So many cargo ships offshore near LA

Heads on CNN today that there are so many cargo ships offshore near LA that they are out of "parking spaces".  In addition at the terminals loading a truck may take 9 hrs ( more than 3x usual).  This backup will last into 2022.  These ships are primarily from China and Vietnam and include almost all electronics, toys and frozen n foods.  What a mess!  I planned accordingly and have almost finished Christmas shopping; will supplement physical gifts with Amazon gift cards.

Trusted Contributor
Posts: 1,687
Registered: ‎03-13-2010

Re: So many cargo ships offshore near LA

@patbz I worked in Purchasing for a large catalog company and encountered this before due to port worker strikes and trucker strikes but never at the scale of this backup! Even though some retailers have booked their own ships and are directing goods to different ports, there will still be a significant shortage of some goods. Compounding the port backups is the lack of goods coming in from the Orient due to factory closures and power shutdowns. (China has been intermittently rationing electricity due to the pollution problems over there). 

 

I have also finished all of my Christmas shopping and shopping for fall/winter upcoming birthdays so that I could get what I want. now. 

 

While some may say that the costs of shifting production of these stalled items to the USA is cost prohibitive, I have to wonder if companies will rethink this once they look at the costs of having to pay so much more now to produce and transport goods from overseas, along with the additional costs associated with offloading at the ports, demurrage charges and cross country transport. 

Honored Contributor
Posts: 9,720
Registered: ‎10-01-2013

Re: So many cargo ships offshore near LA

I'm well aware and that is why I have completed my Christmas shopping. I only have one item left to order because it won't become available until Oct. 18th.

Honored Contributor
Posts: 16,226
Registered: ‎03-09-2010

Re: So many cargo ships offshore near LA

@FlyersGirl I bet there is behind the curtain figuring going on already.

 

I just read an article about Elon Musk and his Tesla company.  One section was about how they dealt with the lack of chips which is affecting so many products.  They were able to increase sales because they found a way to use substitutes in their cars.  Asked if he would consider manufacturing their own chips, his reply, I think, says it has been considered --  paraphrasing, but he said it would take 12 to 18 months to build such a factory.  If he knows that timeliine, he knows more

 

 

Esteemed Contributor
Posts: 6,504
Registered: ‎05-22-2014

Re: So many cargo ships offshore near LA

Like this armada of cargo ships wasn’t bad enough for what it signals for our economic situation, it is thought that it was one of these ships that dropped an anchor that split an oil supply line.  Hence, this huge oil spill off the California coast.

Esteemed Contributor
Posts: 5,897
Registered: ‎05-27-2015

Re: So many cargo ships offshore near LA

@patbz  Not to make too light of this bad situation, but last night I was doing something else, and I heard on the TV that CHIPS were delayed off the coast of California! I went into full panic mode! My DH just shook his head at me.

Esteemed Contributor
Posts: 6,504
Registered: ‎05-22-2014

Re: So many cargo ships offshore near LA

Update to my previous post:

The Coast Guard has now stated that the initial break in the pipeline happened about a year ago, and that time made it worse until it completely fractured.