How the West Coast Ports are Bouncing Back

The Port of Los Angeles is one of the world’s busiest ports, while its sister port, the Port of Long Beach, is the second-largest port in the United States. Together, these ports represent the gateway for international trade into the Western Hemisphere and the US market. Their prominence in world trade, status as top points of supply into the US, and proximity to the Far East place them as not only essential to US shipping but also heavily affected by pandemic forces. 

Although the ports were hit hard, concerted efforts toward recovery have been made with great effect. Below, we’ll discuss how COVID-19 slammed the supply chain, how they’re making a comeback, and what the future might hold for these West Coast ports. 

Impact of COVID-19 on the Supply Chain

The onset of COVID-19 sent shockwaves through the global supply chain. At the very beginning, mandatory lockdowns and quarantines temporarily shut down factories, warehouses, and even ports, causing not only shipping delays but raw material and supply shortages. 

At the same time, consumer demand surged as online shopping and panic buying took center stage.

Consumer demand in August 2021 was 22% higher than pre-pandemic levels while many supplies were either stuck in transit or not even manufactured yet. More people were buying things, and there wasn’t enough to go around. 

The impact was far-reaching: Companies faced low to nonexistent inventory, shipping transit costs peaked, and ports experienced unprecedented backlogs. Cargo ships were continuing to carry goods to ports, but without enough port staff and truckers to transport them off the docks, the containers remained stacked at the port, without room for the next cargo ship to unload, creating the ultimate traffic jam. 

West Coast Recovery 

While the Southern California ports experienced what some would consider the brunt of the impact, they’ve actually made a remarkable recovery—or at least they’re trending in that direction. 

In October 2021, these West Coast ports had 100 cargo ships waiting to enter and unload, with another 45 vessels on their way. That record-breaking number was staggering when compared to the pre-pandemic queue of around 17 cargo ships. 

In response to the bottlenecks, the ports ramped up the number of dockworkers to tackle the backlog, which was partially made easier after the Omicron strain subsided, and they relied more heavily on data to streamline their processes. The White House also created an agreement to make the ports a 24/7 operation to help further relieve the backup. By March 2022, the ports had reduced the ship waiting time to 20%, with only 48 cargo ships in the queue at that time. 

The numbers are looking good across the board for the West Coast ports. The shipping industry has managed to reduce transit times between China and Los Angeles by 40%, and in March 2022, imports were up 29% compared to the previous December. 

What’s more, as companies are finally bouncing back and restocking their inventories, there’s no longer such a race to find available cargo space, which has reduced the pressure on shippers and lowered freight rates. 

What’s Next

The West Coast ports have made a comeback after the many wrenches the pandemic has thrown at them, but it’s still unclear what the future looks like. The ports have since made a significant dent in their backlog, but any upticks in demand could cause further setbacks. Right now, the big question is whether these ports can clear their backlogs before the next supply chain crisis.