Reklam
Reklam
Reklam
Reklam
Reklam

US importers seek to escape LA-Long Beach congestion, but small fry trapped

CONGESTION in the ports of Los Angeles and Long Beach is causing businesses to ship cargo by air or divert goods to other ports, but small businesses are trapped by the expense of doing do, reports the LA area's San Bernardino County Sun.

US importers seek to escape LA-Long Beach congestion, but small fry trapped
16 December 2014 - 23:33

US importers seek to escape LA-Long Beach congestion, but small fry trapped

CONGESTION in the ports of Los Angeles and Long Beach is causing businesses to ship cargo by air or divert goods to other ports, but small businesses are trapped by the expense of doing do, reports the LA area's San Bernardino County Sun.

Tired of the LA-LB port congestion, Pacific Play Tents vice president Brian Jablon considered Portland, Seattle, Oakland, Oxnard and San Diego as alternative ports for his toy shipments and before looking at air freight.

But despite delays in the ports of LA and Long Beach, other options proved too expensive.

"The costs are horrendous," said Mr Jablon, whose family-owned company employs 38 people. "The slowdowns are everywhere on the west coast, and the cost difference between air freight and vessel freight are six to eight times greater."

Meanwhile, his cargo is delayed by two to three weeks, and he's still receiving holiday shipments at a time when he should be restocking for February, when the Chinese New Year shuts down Chinese factories for the celebration.

"It's become a major, major problem," he said.

A beef, pork and poultry exporter who weekly ships 300 to 400 containers of fresh and frozen meats from the west coast recently told the Agriculture Transportation Coalition that the port disruption has prompted them to divert cargo away from the west coast.

"There will be long-term negative consequences for US meat packers if we become viewed by our foreign customers as an unreliable supplier," the exporter said.

Clothing retailer New York & Co CEO Greg Scott said he had to spend about US$2 million in additional freight costs to transport vital merchandise by air to ensure inventory, adding that the company had diverted remaining goods to east coast ports and plans to continue doing that.

Airports that handle air freight have also seen a recent boost in cargo volumes. Los Angeles World Airports saw freight air cargo jump from 161,064 tons in October 2013 to 174,175 tons in October 2014.

Gardena-based toy company Cloud b, which employs 48 people, had to air freight container loads to supply products for customers because of the delays. Cloud b, which sells baby toys and products, earns 40 to 50 per cent of its revenue during the holiday season.

United Parcel Service officials said the company has seen double-digit growth in air freight year on year, adding that the company began communicating with customers with their logistics needs as early as February.

"Based on what we've seen in the past, there's this risk of congestion developing and that customers need to develop or refresh their contingency plans and plan and prepare," said UPS global forwarder Eric Souza.

This news 9501 hits received.

COMMENTS

  • 0 Comment