Supply chains have been experiencing tremendous disruptions lately. As a customer, you might have come across the effects of such disruptions when shopping for gifts during the holidays. Be it in-stock furniture for your home or books – supply chain disruptions can impact all products.
Supply chain management issues are certain to cause hassle for businesses across industries. However, there are solutions to mitigate various shipping disruptions and better serve customers during supply chain disruptions.
If you’re struggling to deal with delayed shipping and dissatisfied customers, here’s a look at the impact of US port congestion on the supply chain to make sense of the core issue.
What is US Port Congestion?
Ports are responsible for managing the ships arriving at the port along with their loading and unloading. Imagine what can happen when the terminals get completely full, and there’s no place for the ships to dock or the cargo to load/unload. This is what port congestion is.
It’s a unique phenomenon associated with multiple delays, queuing, extra voyage time, and dwellings of ships and cargo at the port. This disruption results in additional costs, lost trade, and vast disruption of trade and transportation agreements.
While all this happens at the port, people just line up and wait their turn to get a spot at that platform. The US port congestion in 2022 is caused by various bottlenecks and labor shortages in many industries.
Delayed processes, mismanagement of resources, lack of handling equipment and unexpected climatic interventions all have a role to play in this congestion.
How Does It Affect the Supply Chain?
Since there is a high demand for eCommerce products and a limited stock supply, the prices skyrocket and common people suffer the most.
Every stage of the supply chain is failing in its own unique way, to the detriment of businesses everywhere – and it doesn’t appear that global ports will operate at pre-pandemic capacity anytime soon.
The supply chain is a system that entails a series of steps to get a product to a customer. The various steps include:
- Transforming raw materials into finished goods
- Shipping those items
- Getting them to the end-user
To run a seamless procedure, all of these steps must happen seamlessly. However, the impacts of US port congestion on the supply chain have resulted in inevitable delays and the inability to process all these incoming vessels.
Due to this widespread port congestion, some carriers are forced to reroute and skip certain stops. Not only has this caused extensive confusion in product tracking, but containers continue to be imbalanced throughout the globe.
This significant disruption in the supply chain has been building for months and still shows no signs of abating while consumers continue to fall into the e-commerce industry. More importantly, the management has been jeopardized due to widespread port congestion.
How to Prevent This From Happening?
Though there are several problems, certain preventive measures can help manage the disruption in the supply chain. Some of the most effective preventive measures to avoid shipping congestion include:
1. Find the Right Port
Currently, no significant factors are affecting the Port of Mobile in Mobile, Alabama. The container terminal at the Port of Mobile runs smoothly and has quick and easy access to rails, roads, rivers, and runways.
The capabilities and connectivity of the Port of Mobile make it an ideal gateway for all types of cargo, from coal and containers to forest products and steel, automobiles, and aggregates.
This port is one of the most efficient, versatile, and accessible in the country, with deep water, modern equipment, and multimodal connectivity.
2. Trucking Solutions
It would be ideal if trucking companies were readily available for hire, but the reality is that many are experiencing a driver shortage. With nearly 2 million heavy and tractor-trailer truck drivers, trucking is one of America’s largest occupations.
According to the American Association of Motor Vehicle Administrators, the state government issues hundreds of thousands of new commercial driver licenses annually. With these figures, how is it possible that a shortage is occurring?
The issue at hand may be more about retention and less about a driver shortage. Since the annual turnover rate for long-haul truck drivers at large trucking companies is quite high, finding a trucking partner with a dependable workforce and service that you can rely upon is critical.
Many businesses choose Trademo because of our committed team of transportation professionals, combined with tools for shipment status and tracking.
These factors combined give suppliers peace of mind that their products are in good hands and will arrive at their destination undamaged and on time.
Wrapping Up
Supply chain troubles have become a norm, and many businesses consider it the essential driving force to understand the multi-tier, product-specific flows of goods through the supply chain. With the US port congestion issue broken down and potential solutions highlighted, the ball is in your court.
