Lunar New Year Holiday Closings Approaching
As the Lunar New Year Holiday draws near, many U.S. business who rely on Asian manufacturing have increased their orders to ensure they have inventory on hand before factories in Asia close. The surge of cargo coming out of Asia during this time is not an unusual phenomenon, however, conditions unique to this year, such as the on going pandemic and the shift in consumer demand and behavior have made the challenges of this season worse.
Scheduled Blank Sailings
Ocean carriers are expected to stay on a set schedule during their voyages, however, delays or equipment issues may result in the decision to skip or cancel specific port calls that would normally be part of their schedule. This can cause major capacity issues as cargo left behind must compete for space with the additional cargo arriving for the next call. Because of the rise of COVID 19 cases within the shipping and fright industry and safety protocols that delay vessel operations, several blank sailings have been announced in Asia as well as the U.S.
Equipment Shortages
In the same way that U.S ports and rail terminals are struggling to secure containers, ports in Asia are also finding limited resources. When terminal operations are delayed, as they have been this past year due to labor shortages and safety procedures, it can take longer for containers and chassis to be returned. Limited containers lead to limited space, and the problem has come at a time when cargo from Asia to the U.S. is in its high season.
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