California port cargo backlog shows signs of improving

Wednesday, 18 March 2015 00:32:44 (GMT+3)   |   San Diego
       

The Port Oakland’s containerized import volume dropped 39 percent in February from the same period last year, according to a report Tuesday, adding that exports were down 34 percent. Overall February cargo volume declined 36.67 percent from last year, but the Port noted that the cargo backlog that caused the decline is “on its way out.”

Similar results are expected at most other major West Coast ports when results are announced this week. That’s the after-effect of a nine-month waterfront contract dispute that constricted cargo movement from Seattle to San Diego. Labor and management reached tentative agreement on a new pact February 20 that is still awaiting union ratification.

In the report, analysts forecast an uptick in containerized West Coast trade volume as the cargo backlog disappears. In a sign that Oakland is recovering, the Port said only three vessels were holding station in the Pacific Ocean just beyond the Golden Gate awaiting terminal berths—a significant drop from the 20 vessels awaiting berths in mid-February.

A large part of the Oakland backlog resulted from severe congestion at Southern California ports. Late-arriving vessels from Los Angeles and Long Beach bunched up in Oakland, disrupting schedules and causing container yards to overflow. The Port said it has now cleared out much of the cargo backlog. Some lingering cargo delays are caused by ships still stranded in Southern California.

Import containers in Oakland are getting to customers faster the Port said, because terminals have room to operate. It added that terminal gate operations have improved, which reduces waiting time for harbor truckers. The Port warned of periodic volume spikes that could temporarily slow operations if Southern California’s vessel backlog is cleared.

 


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