The U.S. is likely to see significant disruption in sales due to 65 ships plying outside two of America's largest ports. As the economy reopens post-COVID 19, U.S. markets are seeing a sharp rise in demand that pushes boats off the coast of Los Angeles and Long Beach, California, holding 40% of all cargo containers entering the country.
Before COVID 19, the ports did not see anything because ships did not wait for berthing. After the pandemic, the reopening of the global economy has led to an increase in orders for all industrialists looking forward to restarting their products. The Long Beach and the Los Angeles ports, a primary gateway to U.S. markets mainly exported to China, cannot keep up with the increased shipping capacity. Seventy-three ships were stranded outside the docks - a record-keeping record was recorded on Saturday. Some vessels were diverted, but nearby ports such as Oakland could not handle a large commercial volume.
The U.S. Toy Association, which represents 950 toy factories in the United States, has warned that the California crisis could affect many of its members during a crucial holiday season. Its members sell three billion toys a year, 85% of which are from China.
"The major retailers we work with have relationships with shippers, and they can deal with this storm if properly addressed," said manager Ed Desmond. "It is the small companies that are facing the impact of this impact. They do not have the capacity or size to have these annual contracts."
California ports have now agreed to increase hours when trucks pick up and return containers to reduce backlogs. They are also working with the White House Supply Chain Disruptions Task Force, established in June, to reduce the incidence.