reliable and prompt movement of cargo through the port complex. We’ve worked with supply chain partners to establish a framework for 24-7 operations going forward, which has already added extra terminal hours to POLB operations. We’ve also created a container dwell fee. It has been effective in getting containers moved more quickly out of our terminals. Across the port complex, we have seen 47 percent fewer long-dwelling containers since the fee was announced near the end of October. We’re also operating the Short Term Overflow Resource (STOR) yard at Pier S, which is handling thousands of containers a day, to help provide additional space for our terminals to take containers. We’ve completed some major infrastructure projects, including Long Beach Container Terminal, where the third phase was opened earlier this year, adding one million TEUs in annual capacity. If you could change one thing, what would it be? M.C.: Our partner ports in Asia are already working around the clock. To keep pace, we must build a 24/7 culture in the American supply chain. We have seen growing consensus that a 24/7 supply chain would be a solution to the level of cargo demand that we have seen recently. The situation is evolving, and we expect to see more links in the supply chain find the means to move cargo around the clock. A trucker can pick up a container at 4 a.m. at the Port of Long Beach today, but until distribution centers and other supply chain nodes are open at this time, it’s going to be challenging to handle the volumes of cargo we are handling now and expect to see in the future.
HAPPY CHAU director of sales, OEC Group What are you seeing now? H.C.: Shipping demand hasn’t slowed down, and in the meantime, we are affected by the historic backlog of container ships at L.A.— Long Beach. Many vessels are not able to
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berth, creating further delay for inbound cargo, which in turn delays outbound cargo as well as empty containers returning to Asia and other ports. Canada shipping and rail are also delayed due to weather disruptions. We are currently preparing our customers for the next rush in shipping from overseas that comes right before Lunar New Year. How is OEC Group coping with these issues? H.C.: Throughout this entire extended period of high volumes, historic congestion, and dwindling container space on every vessel rotation, our team has always advised clients to prepare and discuss their forecasts with us as soon as possible. The earlier we know their exact plans regarding delivery windows, quantity of cargo, points of origin, and final destinations, the better we can prepare ourselves with more time. Even in this market, if our team is afforded enough time, we can accommodate almost any order. If you could change one thing, what would it be? H.C.: Most clients consult with us and communicate early and often, but that doesn’t always work across the board. Other than that, I can’t think of much else I’d change in terms of our approach. Even though it seemed like new issues were popping up every day in 2020 and 2021, our team consistently responded really well. It looks like 2022 may be more of the same.
STEVE LAMAR president and CEO, American Apparel & Footwear Association What are you seeing right now? S.L.: The continued supply chain backups— percolating and worsening every day—have hurt our industry’s ability to stock the shelves for holiday shoppers and are fueling record inflation. While there has been positive progress over recent weeks—including recent action by the Biden administration, and the passage of the Ocean Shipping Reform Act (OSRA21)—we are far from out of the woods
“Getting the industry fully aligned around common approaches on sustainability, and getting regulators to recognize these approaches, is a critical area where we need action now to address our climate crisis.” — Steve Lamar, AAFA