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The imposition of steep tariffs by the U.S. government has led to a significant downturn in container ship arrivals at major U.S. ports. Notably, the Port of Los Angeles is experiencing a projected 35% decline in shipments from China, with expectations of one-fourth of scheduled ship arrivals in May being cancelled. This decline mirrors early COVID-19 disruptions, signalling potential challenges ahead for global supply chains.
Anchored Fleets and Rising Dwell Times
Portcast's real-time data reveals the following emerging trends.
The trend of container vessels waiting around the U.S. coast:
- A growing number of container vessels are anchored off the U.S. coast, awaiting berthing slots.Â
- The total waiting time for these container ships has significantly increased in recent weeks, while other regions like China and Southeast Asia have seen a drop in waiting times.Â
- Additionally, the average dwell time per ship around the U.S. coast has risen, indicating delays in cargo processing.
The trend of container vessels approaching the U.S. coast:
- The number of container vessels heading toward U.S. ports has begun to decline, based on the 7-day rolling average.
- While the average speed of vessels approaching U.S. ports has remained steady for now, a slowdown is likely in the coming days.
This situation is compounded by a surge in "blank sailings," where scheduled shipments are cancelled due to decreased demand. The global container shipping industry is experiencing a 13% spike in cancellations, expected to rise to 28%, largely attributed to the effects of the new tariffs and the escalating trade war, particularly with China.
At Portcast, we've developed a dynamic, real-time spreadsheet that provides up-to-date insights on two key trends: container vessels waiting off the U.S. coast and those approaching it. Use this resource to stay informed on the evolving situation at U.S. ports.
Ripple Effects on Global Supply Chains
The slowdown in U.S. port activity has far-reaching implications. Manufacturers and freight forwarders are grappling with disrupted schedules and increased costs. Retailers, especially those reliant on Chinese imports, are already facing inventory shortages, which may soon lead to empty shelves and potential price hikes for consumers.
Stay ahead of the curve with Portcast. Monitor real-time vessel trends, anticipate disruptions, and make data-driven decisions to safeguard your supply chain. Contact us for a demo!
