A massive backlog of cargo ships along the coast of Southern California has been causing delays and frustration.
More than 60 cargo ships are lined up and waiting to dock and unload an estimated 500,000 containers, according to reports by the Wall Street Journal and CBS Los Angeles—a record-setting backup. The backlogs are largely a result of COVID-19 disruptions, spikes in demand and continuing labor shortages at every level, Business Insider and Wall Street Journal reported.
Wood flooring companies that import from overseas are feeling the impact.
“I've been importing wood flooring for 20 years and this is by far the most difficult and unpredictable period I have ever seen,” said Danny Harrington, VP of product strategy for Santa Fe Springs, Calif.-based Galleher.
Shipping container space is expensive and hard to come by, and lead times are unpredictable due to the uncertainty of when a ship will be able to come to port. Even when ships do make it to the port, further shortages have made truck delivery times unpredictable.
“We are having delivery appointments canceled all the time, which results in demurrage charges,” Harrington said. “So in addition to the delays, our costs are unpredictable and still going up rapidly.”
Omer Katzir, who owns Van Nuys, Calif.-based National Hardwood Flooring & Moulding, also told WFB that the situation is taking a toll. “It’s the worst I’ve ever seen so far in my business life,” Katzir said. “Not to mention all the stress and aggravation.” One of Katzir’s drivers waited in line for a shipment for up to 10 hours before he was able to get to the port gate.
The costs of doing business have subsequently skyrocketed, Katzir added. A year ago, the cost of shipping a container from the port to Van Nuys—a trip of approximately 30 miles—was $300. Today, that cost is $1,500. Likewise, the freight from Cambodia to the port that once cost $2,930 now runs around $18,200.
“The bottom line is the port will directly hurt the public paying for it,” Katzir said. “That will affect the economy very soon. People will think twice before buying.”
