September 30, 2021 – Shipping delays and logjams are rampant across the country, on both the West and East coasts. The port in Savannah, Georgia on Monday had a queue of 22 ships waiting to unload.
On the one hand, the backup is a positive, as it signals strong demand for good as retailers scramble to stock up as holiday season approaches. But the nautical backlog — virtually non-existent a few months ago — was also a warning that consumers could see shortages and higher prices, according to supply chain experts.
About 65% of containers passing the port are imports bound for American companies and consumers. Much of the demand now is pegged to the approaching holidays.
In August, the Port of Savannah had its second-busiest month on record, handling 485,595 containers. That was 10% higher than the same month a year ago, which at the time, was a record for August.
Even just a few months ago, the port was busy, but there were often no ships waiting, said Griff Lynch, executive director of the Georgia Ports Authority told the Atlanta-Journal Constitution. “In the spring, it was nothing like this.”
Many other U.S. ports also are backed up. At the massive West Coast ports of Los Angeles and Long Beach, more than 60 ships have been lined up at times this month, part of an unprecedented global bottleneck in moving goods.
One of the casualties is “just in time” inventories which are prevalent in the healthcare industry. Experts are also concerned again about the potential for the bullwhip effect to cause problems down the line once the shipping logjams are resolved.