Consumers in California and throughout the country are wondering why they can’t get their refrigerator or sofa on time.
The simple answer is that they, like many other consumers during the pandemic were unable to spend money on concerts, sporting events or vacations and instead began ordering more products online. In fact, consumers did so much purchasing that California’s public ports and ports throughout the US set all-time cargo volume records.
The tsunami of cargo has now lasted for more than 18 months, causing congestion throughout the supply chain. The people that work in the supply chain have struggled to process the massive increase in container traffic as there is only so much space at terminals and warehouses, and a limited number of trucks, rail cars, chassis and containers. The volume of cargo that remains in the system will take some time to be delivered.
However, there are some lessons learned from this experience that need to be acknowledged and addressed.
First, despite being touted by some, simply keeping a marine terminal open 24 hours a day, seven days a week will not relieve congestion. Marine terminals that opened late gates over the past year, saw very little traffic and terminal cameras often showed empty gates with no trucks coming or going. Addressing only one component of the supply chain without the cooperation and involvement of all others is not a path to success. The congestion highlighted the lack of warehouse and off dock storage space needed to process cargo during surges.
