525 S. Douglas St. , #100• El Segundo, CA 90245 • (310) 607-8000
From congestion to disruption to full-blown crisis, the logistics industry has been under such intense pressure it’s amazing we aren’t living under a rainstorm of diamonds! With reports coming in that we’re seeing days of 100 ships waiting in the San Pedro Bay, forwarders are desperate for options to expedite and recover the cargo. Technically, to illustrate the issue, for every truck available in Los Angeles, there are 16 containers waiting for transportation. 

Coppersmith Global Logistics has almost eight decades of experience in logistics and we’re not afraid to say this is a unique situation even for us. Thankfully, this situation has reinforced the path to success we’ve paved.
Ports of LA and Long Beach announce "emergency" fees
Due to the extreme disruption and dozens of ships waiting in the San Pedro Bay, the ports have announced a per-container fee that doubles each day for carriers who wait past their allotted free time.

On the first day, the fee is $100/container; $200/container on the second day; $300/container on the third day; $400/container on the 4th day & so forth. After the fifth day at this compounding cost, the total fee would be $1500 ($100+$200+$300+$400+$500). 

It should come as no surprise that carriers will pass those costs down until they land on consumers.
Supply cannot keep up with demand as Americans break shopping records amid a supply chain crisis
According to the National Retail Federation, focusing on the shortage of goods in America is only telling half the story. While there is a shortage, it's not just because the supply chain has hit a bump- Americans are shopping at a record-breaking pace and imports are coming in at a record-breaking pace to meet those needs.

Based on details from the NRF, the inventory to sales ratio is the lowest it has been in years, meaning that goods on hand are almost instantly picked up by shoppers. This means the shortage isn't because there aren't goods, but because shoppers are in a buying frenzy.
NEWS FROM COPPERSMITH
COPPERSMITH IS AN IPATA SILVER SPONSOR!
COppersmith is proud to be a silver sponsor for the 2021 IPATA International Virtual Conference. The IPATA (International Pet and Transportation Association) was founded in 1979 as a non-profit trade association of independent members who are dedicated to the safe and humane transport of pets and other animals. It is an honor to work alongside professionals who are dedicated to the safety, security and understanding that's required when shipping "Man's Best Friend" so that families are reunited quickly and stress is minimal on all involved.
Air cargo rates climb considerably as shippers try to avoid ocean delays and expedite cargo.

As we move on from talking about our current situation with ocean cargo disruption and turn our attention to the air cargo sector, we can now see that the disruption is reaching out to infect the other modalities. With most of the world telling holiday shoppers to hurry and get orders in if they want to see their products arrive on time, many suppliers are turning to the remaining air freight capacity to expedite inventory to stores before Thanksgiving driving rates up again. The Loadstar has the story.
Monetary Policy
Coppersmith Monetary Policy Update Due to the increasing strain on the international shipping industry, pushing costs up more than fivefold in the past year, Coppersmith has had to revisit our monetary policy with customers. 

Therefore, we are asking that each customer pay their service fees directly to the vendor who provides the service. 

As we advised in our August Newsletter, we too have moved to electronic payments of our invoices. Please ask your Coppersmith representative for our bank information to pay us via ACH.
California cargo delays are piling up as the Biden Administration tries to work with the private sector to stop the disruption that's bottlenecking cargo on US coasts. Between building to a 24/7 schedule on the west coast to enhanced demurrage charges being levied {talked about above} the solutions should not be more painful than the problem. And the problem is out of control demand and shoppers who are adamant about getting their purchases no matter what it takes or how bad the situation gets.
The gloves are coming off as logistics professionals, truckers, longshoremen, forwarders and carriers start attacking each other in the news, giving tabloid-like interviews to various media outlets blaming each other for everything that's gone wrong in logistics. Truckers point at crane operators (the ports have moved record numbers of containers this year) and dockworkers point to shippers and consumers. All sides should be heard but they're definitely not equal arguments.
The extended hours at ports are a key part of the solutions that everyone who has a stake in the logistics industry is proposing. With mega-companies like Walmart and UPS using the night hours to load cargo from the Port of Los Angeles, the around the clock operations should bring more traffic during the "hoot shift" which runs from 3am - 7am, a time when ports are traditionally either closed or deserted. As the port keeps calling in casual workers to catch overflow, stress should abate eventually.