Introduction

The current backlog of cargo in the United States ports, particularly at the ports of Los Angeles and Long Beach, has emerged through a confluence of factors, both pre-dating and induced by the COVID-19 pandemic. While the situation at these ports is severe, understanding the causes can help highlight potential solutions.

Causes of the Port Backlog

Dock Worker Health Concerns: Early issues were exacerbated by dock workers who refused to get vaccinated, leading to outbreaks. Once infected, many couldn't work, causing a shortage of labor essential for unloading ships. Pandemic-Induced Supply Chain Disruptions: The global pandemic caused supply chain problems in most major trading nations, leading to increased demand and backlog in the United States. Now that these countries are recovering, back orders are being caught up, creating a sudden surplus of cargo at U.S. ports. Inadequate Labor and Automation: Many U.S. ports are not as automated as international counterparts, resulting in slower unloading processes. This, combined with a shortage of skilled longshoremen and a lack of 24/7 operations, contributes to the backlog. Limited Truck Driver Resources: There has been a longstanding shortage of truck drivers, which hinders the ability to transport cargo from ports to warehouses and retail centers. The issue is compounded by the high costs and stress of the job, making it difficult to attract new workers. Railway Capacity Constraints: Railroad companies have laid off workers and not expanded their routes or railyards, leading to congestion, especially in interior cities. This further complicates the ability to efficiently move cargo inland. Many warehouses, especially in the Los Angeles area and Inland Empire, are already at or near full capacity, leaving no room for additional cargo. This limits the overall capacity to handle the backlog effectively.

Current Efforts and Solutions

To address the backlog, several strategies are being implemented:

24/7 Operations: Ports like Los Angeles/Long Beach are working to increase their operating hours to unload cargo faster. This requires hiring more longshoremen, a process that cannot be completed overnight due to the high skill level and responsibility required for these jobs. Partnership with Major Retailers: President Biden has called on major retailers like Walmart, Target, and UPS to operate during night hours to help clear the backlog. While steps are being taken, the scale is dwarfed by the number of containers waiting to be unloaded. Investment in Infrastructure: There is a need to build more warehouses and expand rail networks. However, this takes time and significant investment. Improving Wages and Benefits: Retailers and logistics companies must offer better wages and benefits to attract and retain necessary labor. Wages that have remained static for decades cannot incentivize workers to join the logistics sector.

Conclusion

The port backlog in the United States is a complex issue influenced by a variety of factors including labor shortages, automation deficits, and logistical constraints. While immediate solutions can help alleviate the current crisis, long-term strategies are needed to prevent future backlogs. By addressing these root causes, we can ensure a more efficient and resilient supply chain in the future.