Please respond to both of these posts – each response must be at least 250 minim
Please respond to both of these posts - each response must be at least 250 minimum words In the response critique the main comment by either (1) Offering additional insight on why you agree with the main comment of (2) Offering additional insights on why you disagree with the main comments. Post 1: The ports of Los Angeles and Long Beach California have become two of the most popular west coast ports ever since the United States started doing business with Asia. In fact, these two ports make up about 40% of shipping container traffic entering the United States. COVID-19 has made a very strong impact on the efficiencies of these ports and caused there to be a drastic increase in the average wait time for ships to unload their cargo at these ports. The pandemic changed people's lifestyles because of the fact that people were not able to leave the house. This shift in daily life inevitably changed the buying habits of consumers in 2020. Consumers no longer spent money on services like eating out, traveling or going to the movies. This decrease in purchases on services caused consumers to put all their money into goods instead. This rapid increase in purchase of goods cause a worldwide shortage and imbalance to international shipping. This increase of demand for goods then caused all cargo ships to increase their premium and make shipping costs even higher for consumers. These shortages were also primarily due to the lack of workers in the industry at the time. People in warehouse or trucking positions were sick of being over worked and underpaid and ended up quitting their jobs to get the point across. Bottom line is that there wasn't enough trucks to bring all the goods to and from the ports anymore. Once the cargo ships were finally able to unload at the docks, there often wasn't enough room on the dock for the full containers. "In fact, the Port of Los Angeles has remained mostly closed between 3 am and 8 am, despite technically being open 24/7. There just aren’t enough trucks calling on the port in those hours to make it worth it for the port’s privately owned and operated terminals to stay open around the clock" (Isidore, Chris). Items unloaded off the ship weren't moved fast enough onto land, so things were left on port docks for weeks until room opened up in warehouses nearby. Once the containers were finally unloaded on land, the empty containers were then being loaded back onto Unites States bound ships just to be able to open up some space for new containers coming into the docks. This was a problem because typically, the cargo ships could choose to wait until those empty containers were filled with items that were needed to head back to America. However, now they have no choice but to bring them back empty and are therefore feeling the pressure since they won't make any money off of it. Resources: Isidore, Chris. “Everything You're Waiting for Is in These Containers.” CNN, Cable News Network, 23 Oct. 2021, https://www.cnn.com/2021/10/20/business/la-long-beach-port-congestion-problem-national-impact/index.html. Grillot, Kyle. “Every Step of the Global Supply Chain Is Going Wrong — All at Once.” Bloomberg.com, Bloomberg, https://www.bloomberg.com/graphics/2021-congestion-at-americas-busiest-port-strains-global-supply-chain/. Post 2: In 2021, port congestion increased sharply with record breaking queues outside of the ports of Los Angeles and Long Beach. There are numerous factors that contributed to this congestion, most of which were biproducts of the 2019 COVID pandemic. An improvement in consumer demand in 2021 resulted in large-scale restocking as business tried to take advantage this resurgence. According to the BBC, overall consumer goods demand increased 22% compared with pre-pandemic levels when comparing February 2020 with August 2021. This is partially attributed to more Americans spending their money on goods versus travel and entertainment outside of the home. In addition, the pandemic fueled an e-commerce boom that has generated more imports from overseas than ever before. Worker shortages also contributed to the congestion in a big way. A shortage in port staff to unload and move containers and not enough drivers for lorries caused containers to stack up in the ports which prevented and delayed additional ships from docking. Once unloaded, containers were slow to move due to a shortage of truck drivers and trucking equipment. According to the American Trucking Association, the U.S. is currently lacking about 80,000 drivers. With empty containers piling up on the docks, there were also space constraints that further inhibited the efficient movement of goods and compounded the problem. According to Jim McKenna, chief executive officer of the Pacific Maritime Association, which represents the shipping lines and terminal operators and employs the 8,000 longshore workers at the ports, “If we are constantly working at 100% capacity, it’s impossible to work as efficiently as we would be at 85% capacity.” In general, the ports were not prepared for such a surge in demand and already had logistic capacity problems before the pandemic. According to Gary Hufbauer, Senior Fellow at the Peterson Institute for International Economics, these issues reflected years of inadequate investment and he estimated that “there was probably less than 5% margin of spare capacity." Although industry experts do not anticipate immediate relief, the port congestion has definitely generated a lot of attention on the issues at hand with local and federal government getting involved to help offer solutions. Ultimately, as our dependence on imports and consumer goods continues to grow this will be an area of continued focus for supply chain experts around the world. References: Berger, P. (2022, February 10). Ship Backup at Southern California Ports Is Receding. WSJ. https://www.wsj.com/articles/container-ship-backup-at-southern-california-ports-is-receding-11644523945 (Links to an external site.) Luxen, M. G. J. B. (2021, October 16). Shipping disruption: Why are so many queuing to get to the US? BBC News. https://www.bbc.com/news/58926842 (Links to an external site.) Paris, C. (2021, May 18). Shipments Delayed: Ocean Carrier Shipping Times Surge in Supply-Chain Crunch. WSJ. https://www.wsj.com/articles/shipments-delayed-ocean-carrier-shipping-times-surge-in-supply-chain-crunch-11621373426 (Links to an external site.) Saraiva, A., Murray, B., Cannon, C., Dottle, R., Morrison, G., Shulman, F., Wood, M., Qiu, Y., & Tribou, A. (2021, November 23). Every Step of the Global Supply Chain Is Going Wrong — All at Once. Bloomberg.Com. https://www.bloomberg.com/graphics/2021-congestion-at-americas-busiest-port-strains-global-supply-chain/

Leave a Reply

Your email address will not be published.