Hello, it’s IINO.
I would like to broadcast IINO san’s Logistics Radio.
Today I would like to talk about the theme, “More than 100 ships waiting to come in at LA and LB ports.”
Daily Logistics Radio by IINO san in 17th Dec. 2021
Ports of LA, LB, Over 100 Vessels Waiting Offshore
I have been reporting on this channel recently that the offshore waiting list at both LA and LB ports is improving.
As of December 14th, there were about 60 container ships within 40 miles (about 64 kms) of the ports of LA and LB, 30 of which were loading and unloading, and 30 were waiting offshore.
In reality, however, it is reported that 71 vessels are waiting to enter the port, operating at reduced speed, away from San Pedro Bay, where the ports of LA and LB are located.
Including these, there are actually 101 vessels in the process of unloading or about to unload.
How Is Cargo Movement at North America Improving?
To give a rough estimate, if we assume a container size of 5,000 TEU, 100 ships would be 500,000 TEU, which is 500,000 of 20-feet containers, or 250,000 of 40-feet containers.
The article states that many in the market are expecting cargo flows to improve after the Chinese New Year (February 1st, 2022).
On the other hand, a forwarder source said, “At this point in time, cargo movement to North America is not slowing down. It is too optimistic to assume that anything will change after the Chinese New Year.”
I totally agree with this opinion. I myself feel that it is quite naive to think that it would be better around Chinese New Year, given the situation and the rough numbers.
As I’ve said many times on this radio, we should know what’s going on, think for ourselves, and take action.
Causes of Increased Offshore Waiting in the Far Reaches of San Pedro Bay
Back to the topic at hand, the reason why the ship was operating at a reduced speed in the far reaches of San Pedro Bay is due to the change in rules regarding port of entry starting in November.
There have been concerns about environmental degradation caused by exhaust gas and other pollutants from the large number of ships docking in San Pedro Bay.
In response, PMSA, a shipping company association, PMA, a port user association, and other related parties held discussions and revised the rules for port entry in mid-November.
Under the new regulations, it has been decided that the area within 40 miles (64 km) of both ports will be designated as a safety and air quality area, where ships will be allowed to dock less.
Vessels waiting to enter the ports are requested to stay in an area 150 miles (about 240 km) away from the ports. Some of the vessels are waiting near Mexico.
Therefore, as we have been reporting, the situation in the yard had been improving due to fines for overdue containers by the LA and LB ports and cargo pickup by major shippers, but the reality is that there were still ships waiting.
The article concludes, “It will take some time before there is a significant improvement.”
North American Coastal Emission Regulations
The North American coast has strict emission regulations, and in January 2020, LSS was introduced as SOx regulation in line with MARPOL 73/78 Convention.
This is a regulation that calls for the use of high quality fuel oil A and scrubbers for exhaust gas because conventional fuel oil C generates a lot of PM2.5.
In particular, the coast of North America and the Baltic Sea have stricter standards than those of SOx regulations as ECA, emission control area.
In California, there are many people who are highly conscious of the environment, and Teslas are usually used instead of gasoline engines. In such a situation, if a ship is emitting exhaust gas on the coast, it is understandable that it would be a problem.
It is the situation of waiting containers is still far from improving.
I will continue to keep you updated the relevant information.