The ports of Los Angeles and Long Beach, California are feeling the effects of the spread of the coronavirus as dozens of work shifts are cancelled due to the severe decrease in cargo volumes from Asia. This has a ripple effect including making it difficult for shippers and truckers to return empty containers, causing a shortage of chassis and a space crunch at marine terminals, warehouses and trucker yards.
Additionally, CFS provider International Cargo Logistics – L.A. is adjusting operating hours. Effective Monday, March 9th, their windows will open at 7:00 AM and close at 3:00 PM.
Trans-Pacific carriers continue to report blank sailings due to the decline in volumes. This results in the return of empty containers with no workers to receive them. Southern California is also expecting a shortage of chassis as they sit idle with empty containers.
“The blank sailings have significantly reduced the outbound vessel capacity needed to return the empties to Asia, disrupting round-trip voyages and creating equipment shortages. We are monitoring the situation closely and will continue to provide frequent updates,” said Joe Monaghan, CEO of Worldwide Logistics.
New Restrictions at Terminals
Some terminals are now notifying beneficial cargo owners (BCOs) they will only accept empties from truckers that are also taking delivery of full containers coming off ships.
The blank sailings have reduced import volumes so much so that Los Angeles and Long Beach have increased their gate closures, causing import distribution centers and truckers to have to store empties and they are resting on chassis. The refusal of empties at terminals also means the occurrence of detention fees for the late return of equipment.
When Will We See Progress?
With output nowhere near normal rates at many Chinese factories, the expected return to full production is still weeks away. Carriers continue to cancel many trans-Pacific sailings to North America and will continue until mid April. We will keep our customers updated as this crisis continues.