Persistent congestion at the ports of Los Angeles and Long Beach is causing delays in shipments. As a result, both transpacific eastbound and westbound trades continued to experience decreasing schedule reliability in October, according to the latest Global Liner Performance report from SeaIntel Maritime Analysis.
In October, schedule reliability in the eastbound transpacific trades dropped by 3 percentage points to 58 percent, while westbound reliability declined by one percentage point to 71 percent, according to SeaIntel.
North America to Oceania trades were also affected by port congestion. While the Oceania-North America trade lanes experienced 17 percentage points drop in schedule reliability, the return route saw a decline of around nine percentage points, said the report.
“It is our assumption that the decrease in on-time performance is clearly linked to the congestion,” said Alan Murphy, operations chief at SeaIntel. “The situation in California must be frustrating for shippers and carriers, who see schedule reliability and container delivery having declined by 23.5 and 24 percentage points, respectively,” Murphy added.
Despite the transpacific fall, overall schedule reliability of global shipping lines improved to 74.6 percent in October from 73 percent in September, according to SeaIntel. Murphy also said that congestion alone should not be blamed for the situation.
“It is important to note, that we cannot with certainty conclude that the significant declines in schedule reliability on trade lanes calling Los Angeles and Long Beach are caused by the congestion in the port complex, but it is our assumption that the decrease in on-time performance is clearly linked to the on-going congestion,” said Murphy
Co-Founder, Gogroups Ltd, USA