As the winter holiday rush approaches, the auto transport industry dreads the impact container backlogs may have on the market. Since the supply disruptions caused by the COVID-19, the industry is yet to regain its feet fully. As with other industries in the market, the lockdown caused price hikes in automobiles. Nevertheless, the American market has experienced a surge in demand for vehicles. With current congestion at the Port of Los Angeles and Long Beach, meeting the surge in consumer demand proves challenging.
However, a drawback to meeting consumer demand is the shortage of truck drivers truck drivers responsible for moving the goods and automobiles from the ports to the consumers. The Chief Economist of the American Trucking Association, Bob Costello, has announced that the trucking industry lacks about 80,000 truck drivers and that if nothing is done, the figures may increase to 160,000 by 2030. Over time, the shortage has caused overstocking in Los Angeles and Long Beach ports, slowing down the supply of vehicles to customers. Although other factors contribute to price hike in automobiles, the supply chain disruption has not helped matters too.
On the 13th of October, in an attempt to relieve the strain on the automobile supply chain, President Joe Biden announced that the Port of Angeles will now be open 24/7, with the hope that the extension in working hours will double the amount of cargo shipped out of the port per day.
Measures to Clear the Container Backlog in the Automobile Industry
The city of Long Beach tried to address a different part of the puzzle by issuing a temporary, 90-day waiver of its rule. So, the containers are to be stacked only two units high during storage. This plan could help workers to move more containers off the ships floating offshore.
Additionally, the twin ports said they would increase the pressure on companies to move their inventory off the dock. They will embark on assessing a surcharge to ocean carriers for import containers that dwell too long on marine terminals. Consequently, the ports will now charge carriers a daily fee for every truck-bound container dwelling nine days or more. It will also apply to every rail-bound container that has dwelled for three days or more.
Thirdly, the Port of Long Beach announced a separate plan to move many of those lingering containers off the docks. It will be achieved by shifting them to Utah through a deal with the Utah Inland Port Authority (UIPA) and Union Pacific Railroad. This would be the fourth attempt to clear the container backlog in the ports of Los Angeles and Long Beach.
These new implementation and actions have been carried out to improve the automobile supply chain and clear container backlog at the ports. Moreso, there are plans for recruiting more truckers to bring rapid relief from existing port congestion by optimizing rail deliveries between the two states.
Our Role at Metti International
To alleviate the bottlenecks in the automobile industry, all hands are on deck at Metti International to refine shipping operations. Metti International will work hand in hand with the government by sticking to the implementations. With our extensive auto carrier network we provide a smooth transport experience. Despite the congestion at the ports, we work at our best to meet our customer’s demands.
As a reputable and trustworthy car shipping company, we have acquired a stellar A+ rating from the Better Business Bureau. We are a licensed car shipping broker with the Federal Motor Carrier Safety Administration. Customer service is our priority so, we provide safe and timely arrival of your car shipment. Metti International is the top choice for your vehicle shipping needs.