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California ports hit 17-day record logjam as supply chain crisis continues to disrupt shipping

California ports hit 17-day record logjam as supply chain crisis continues to disrupt shipping 2

The logjam at California’s ports for ships to wait is now as long as 17 days – a new record amid the continuing  supply chain crisis.

There were as many as 83 ships at anchor and in a holding pattern outside ports in Los Angeles and Long Beach as of Friday night, officials said. 

The nearly 17-day wait is double the wait time from just two months ago. 

California Gov. Gavin Newsom is attempting to address the problem by doubling capacities at the state’s DMV in an effort to conduct more commercial driving tests and ease the truck driver shortage.  

‘With today’s announcement, we’ll get more truckers on the road to get goods where they need to go faster,’ Newsom said. ‘The supply chain crisis is not a California specific problem, but we’ve taken swift action to relieve congestion and increase our capacity to move goods quickly.’ 

The California DMV will open up Saturday hours at various test sites.  

The logjams at the ports come as strained supply chains have caused controversy for President Joe Biden as they combine with inflation and shortages of workers. 

Cargo ships waited in the waters off Los Angeles on Thursday amid a record backlog at the ports

Cargo ships waited in the waters off Los Angeles on Thursday amid a record backlog at the ports

As many as 83 boats have been either anchored or in a holding zone as of Friday night, moored off the Los Angeles and Long Beach ports

As many as 83 boats have been either anchored or in a holding zone as of Friday night, moored off the Los Angeles and Long Beach ports

The Port of Long Beach, seen above on November 12, and the Port of Los Angeles are currently dealing with over two-week long logjams of ships waiting to come in

The Port of Long Beach, seen above on November 12, and the Port of Los Angeles are currently dealing with over two-week long logjams of ships waiting to come in 

California Gov. Gavin Newsom (pictured) is attempting to ramp up production by allowing for more commercial license tests at DMVs in order to remedy the truck driver shortage

California Gov. Gavin Newsom (pictured) is attempting to ramp up production by allowing for more commercial license tests at DMVs in order to remedy the truck driver shortage

Trucks haul shipping containers out of the Port of Los Angeles in late October

Trucks haul shipping containers out of the Port of Los Angeles in late October

‘Every sector of the supply chain has reached capacity,’ Port of Long Beach Executive Director Mario Cordero said in a statement earlier this week. ‘We are trying to add capacity by searching for vacant land to store containers, expanding the hours of operation at terminals, and implementing a fee that will incentivize ocean carriers to pull their containers out of the port as soon as possible.’

Biden said on Wednesday that most Americans cannot understand the problems faced by the United States’ supply chains, adding that ‘not a lot of people’ have a clear grasp of the networks and their implications.

Speaking at the port of Baltimore, where he touted his $1.2 trillion infrastructure bill – which was passed by Congress earlier this month, and which he plans to sign into law on Monday – Biden said that investing in resiliency was essential.

‘You hear a lot about the supply chains in the news, but frankly, not a lot of people have a clear understanding, whether they have a Ph.D. or they didn’t go to school, about how a supply chain works,’ the president said.

‘In simple terms, supply chain is just the journey that a product takes to get to your doorstep,’ he said.

President Biden said it was understandable that most people did not fully comprehend the complexity of global supply chains

President Biden said it was understandable that most people did not fully comprehend the complexity of global supply chains

The president in Baltimore also admitted that his decision to send out stimulus checks contributed to the current high inflation. 

‘The irony is people have more money now because of the first major piece of legislation I passed.

‘You all got checks for $1,400. You got checks for a whole range of things,’ Biden said, referencing his COVID relief checks sent out in April.

‘If you’re a mom and you have kids under the age of 7, you get $300 a month and if it’s over 7 to 17, you’re getting $360 a month,’ he said, misstating the second amount, which is $250 per month.

‘It changes people’s lives. But what happens if there’s nothing to buy and you got more money to compete for getting [goods]? It creates a real problem.’

‘On the one hand, we’re facing new disruptions to our supplies. At the same time, we’re also experiencing higher demand for goods because wages are up as well as people have money in the bank. And because of the strength of our economic recovery, American families have been able to buy more products.’ 

Biden said it was ‘easily understandable’ why Americans would not comprehend how ‘incredibly complex’ supply chains work, because they rarely crossed peoples’ minds.

‘As long as goods and materials are getting where they need to go on time, there’s usually no need to worry about the supply chains,’ Biden said.

Since September, the United States has – like other countries around the world – been battling snarled supply chains.

Ships have spent days off the coasts of the world’s major ports, unable to unload their cargo due to a shortage of delivery drivers and technical staff. Container ships have plied their routes with their vessels only partially loaded, due to logistical issues in ports and warehouses.

The crisis has led to fears that stores may not have enough supplies for the holidays, and gifts may not arrive.

Biden has said before that the knock-on effect of the supply chain problems were scarcely understood.

On Saturday, he said: ‘If we were all going out and having lunch together and I said, ‘Let’s ask whoever’s in the next table, no matter what restaurant we’re in, have them explain the supply chain to us.’ Do you think they’d understand what we’re talking about?

‘They’re smart people,’ the president added, but he concluded the current crisis was a part of a ‘complicated world.’

Biden also said Saturday that he has yet to see a reporter outline ‘very well’ how supply chains work.

Biden tours the Port of Baltimore, the 12th busiest in the United States, in November 2021 amid the ongoing supply chain crisis

Biden tours the Port of Baltimore, the 12th busiest in the United States, in November 2021 amid the ongoing supply chain crisis 

The Port of Baltimore is the nation’s largest port for specialized cargo and passenger facilities

The Port of Baltimore is the nation’s largest port for specialized cargo and passenger facilities

The Consumer Price Index (CPI) rose 6.2 percent in October 2021 from one year prior - the highest it has been since 1990

The Consumer Price Index (CPI) rose 6.2 percent in October 2021 from one year prior – the highest it has been since 1990

The Consumer Price Index shows a rise in prices in every category from used cars, laundry equipment, furniture to food

The Consumer Price Index shows a rise in prices in every category from used cars, laundry equipment, furniture to food

Earlier on Wednesday an inflation report showed the largest annual increase in prices in three decades.

The Bureau of Labor Statistics said that prices in October rose 0.9 per cent from September — and more than 6 per cent over the past year, the largest annual rise in 30 years.

‘I’m here to talk about one of the most pressing economic concerns of the American people,’ he said. ‘And it’s real.

‘And that is getting prices down, number one.

‘Number two, making sure our stores are fully stocked.

‘And number three, getting a lot of people back to work while tracking and tackling these two above challenges.’

He said he believed the problem was temporary, and that the economy would stabilize.

‘People are not going out to dinner and lunch and going to local bars because of COVID. So what are they doing? They’re staying home and ordering online and they’re buying product.’ Biden said.

‘Well with more people with money buying product and less product to buy, what happens?

‘The supply chain’s the reason, the answer is you guys, I’ll get to that in a minute. But what happens? Prices go up.’

He said that the U.S. was feeling the effects of a positive sentiment in the economy.

Biden said that ‘more products are being delivered than ever before — that’s because people have little more breathing room than they did last year. And that’s a good thing.

‘But it also means we’ve got higher demand for goods at the same time we’re facing disruptions in the supplies to make those goods. This is a recipe for delays and for higher prices.’

Strained supply chains have become an economic drag on the world’s largest economy and a political risk for President Joe Biden as the disruptions put upward pressure on inflation while highlighting shortages of workers, including truck drivers and warehouse staff. Consumer sentiment is deteriorating amid a spike in the cost of living.

‘Every sector of the supply chain has reached capacity,’ Port of Long Beach Executive Director Mario Cordero said in a statement this week announcing that its terminals had their second-busiest October on record. 

The White House earlier this week touted incremental progress at L.A.-Long Beach– a 20% decline in the number of containers sitting for more than nine days days in the week to Nov. 8. The adjoining gateways for 40% of the nation’s containerized imports have handled 17% more volume this year, while their land-side storage capacity remained unchanged. 

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