Stimulypto! Record $22 Billion Of Cargo Stuck On Cargo Ships Off California Shore (Baltic Dry Shipping Price Index UP 239% Since Jan 1, 2021)

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by confoundedinterest17

Massive Fed monetary stimulus coupled with massive Covid “relief” by the Federal government (aka. Stimulypto) has resulted in clogged ports in the US, particularly Long Beach CA. And Santa Catalina island.

Twenty-six miles across the sea
Santa Catalina is a-waitin’ for me,
Santa Catalina, the island of romance,
romance, romance, romance.
Water Cargo ships all around it ev’rywhere,
tropical trees and the salty air ships dumping sewage,
but for me the thing that’s a-waitin’ there’s romance.

There was fleeting hope that Southern California port congestion had turned the corner. The number of container ships waiting offshore dipped to the low 60s and high 50s from a record high of 73 on Sept. 19, trans-Pacific spot rates plateaued, the Biden administration unveiled aspirations for 24/7 port ops, and electricity shortages curbed Chinese factory output.

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The reality is that the port congestion crisis in Southern California is not getting any better. Particularly if you like boating around The Catalina islands off the California shore.

The time ships are stuck waiting offshore continues to lengthen. There are simply too many vessels arriving with too much cargo for terminals, trucks, trains and warehouses to handle. There were 103 container ships at Los Angeles/Long Beach terminals or waiting offshore on Wednesday, an all-time high.

Offshore, the number of ships at anchor or in holding patterns is once again nearing record territory. According to the Marine Exchange of Southern California, 70 container ships were waiting off Los Angeles and Long Beach on Monday, 67 on Tuesday and 71 Wednesday (not including other cargo ships that are loaded with boxes).

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Chart: American Shipper based on data from Marine Exchange of Southern California. Data bi-monthly April-Nov 2020; daily Dec 2020-present

The Baltic Dry Exchange (shipping) index has dropped recently, but is still up 239% since January 1, 2021.

The good news? Ships at anchor off Shanghai/Ningbo down nearly 50% over the past 18 days.

So, China port congestion is clearly as it transfers to California. And US prices soar.

 

 

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