It is these ports that cause the largest congestion in the supply chain

The drop in the productivity of the Shanghai port, which has been driven by a shortage of working people due to the Covid lockdown, can be seen while waiting for a container at the port, according to CNBC’s new supply chain supply map.

“In Shanghai, ocean terminals, warehouses and trucking services are operating as usual but with less efficiency due to staff shortages and driver shortages,” said Brian Burke, chief growth officer at SEKO Logistics.

CNBC’s Supply Chain Heat Map is a new data tool created by CNBC together with 10 of the world’s top marine and logistics data providers. It presents dozens of challenges facing the global supply chain in real time, so that investors can understand the inventory problems facing companies.

Trade is a forward-looking indicator of a country’s economic health as well as a company’s supply chain. A dormant ship doesn’t make money. A container in a sleep state means inventory issues. The heat map tracks all the important pieces within the supply chain: plant capacity, vessel availability, container availability, trucking capacity, port throughput, vessel transit time, and rail capacity.

Tesla announced last week that it had to reduce production of its cars in Shanghai due to a shortage of spare parts. Toyota was forced to stop production at eight plants in Japan for the same reason. The company announced that production in May for both Lexus and Toyota will be cut due to the shutdown. As a result, automakers Volkswagen, Mazda and General Motors were forced to cut production.

The gradual easing of Shanghai’s lockdown is set to begin on June 1, but details are murky.

“The gradual reopening is highly dependent on the number of cases in your area and your building,” said Jasmine Wall, general manager of growth, marketing and communications, Asia Pacific, at SEKO Logistics. “Some people got two-hour permits to go buy food but the majority are still under complete lockdown.”

Snapshot of the US supply chain

The supply chain heatmap shows that the challenges do not stop in China.

According to MarineTraffic and Blume Global data, the Port of Auckland tops the congestion list with ships taking six days to unload and load. The import containers remain for approximately 11 eleven days at the port before being transported. The Port of Los Angeles has the second highest port in waiting times, with nearly 12 days for containers to leave port and five and a half days for ships to be processed. Rail delays of 6.2 days are also affecting port productivity.

“Today, railroad boxes have been waiting more than six days to get on the train,” said Port of Los Angeles CEO Jane Siroca. “This is triple the residence time compared to the days before the pandemic. Rail volume has increased sixfold since February. We need more rail assets in America’s busiest port complex. It is important that all stakeholders redouble their efforts to increase rail shipments To the fullest extent of our sidewalks and to the local economy.”

BNSF and Union Pacific serve the Port of Los Angeles. The BNSF has been embroiled in a labor dispute over the attendance policy for months. According to Greg Reagan, president of the transportation trade division, AFL-CIO, about a thousand workers have quit since February. Union Pacific recently told the Surface Transportation Board that it has achieved nearly half of its 2022 target to hire 1,400 new train crew members.

Constant congestion on the west coast increased the flow of trade to the east coast and Gulf ports. The Ports of New York and New Jersey have benefited greatly from this trend.

“We are already seeing some front loading, as Asian manufacturers are shipping goods early to alleviate expected congestion at ports,” explained Pervinder Johar, CEO of Bloom Global. “Instead of going through West Coast ports, more of this cargo is going to ports on the East Coast, simply diverting capacity issues from west to east. I think that although we have seen an improvement in freight flows from ports nationwide, it has It would be short-lived.”

While the savanna is now green, expect to turn yellow or even red. MarineTraffic says it is seeing an increase in the number of ships waiting off Savannah, which is an indication that demand is moving east.

“In the week beginning May 9, the port saw an average of two container ships, the equivalent of 20,000 containers waiting,” said Alex Charvalias, general manager of Marine Traffic. “During the week of May 16, there were an average of 13 container ships, which equates to a waiting container capacity of over 100,000. Given this significant increase in container waiting week by week, we estimate that port wait times will increase by 100% on average. three days or more.”

CNBC Supply Chain Heat Map data providers are the global Freightos freight booking platform, and creator of the Freightos Baltic Dry Index; logistics provider OL USA; Supply Chain Intelligence platform FreightWaves; Bloom Global Supply Chain Platform; third-party logistics provider Orient Star Group; marine analytics company MarineTraffic; Marine Vision Data Corporation Project44; shipping data company MDS Transmodal UK; Sea and Air Freight Measurement for Xeneta Analytics Company, a leading provider of research, analysis, data services and advisory services within the global Sea-Intelligence ApS supply chain industry; and SEKO Logistics for air and freight logistics services.

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