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Carriers deploy extra ships to east coast ports in LA-LB gridlock
US WEST COAST port gridlock has reached such a critical level that harbour congestion has resulted in delays of three weeks prompting carriers to divert ships to the east coast.
The gridlock is expected to add substantial costs for carriers as shipping lines scramble to deploy additional vessels as extra tonnage is needed to maintain sailing schedules and to re-position equipment stuck in US ports, according to Alphaliner.
Port congestion has induced carriers to inject 36 extra ships with a combined capacity of 233,000 TEU into the Far East-US west coast trade.
The diversion of cargo to US east coast ports has boosted demand in the Far East-USEC trade, with spot rates soaring to record highs.
As negotiations over a new labour contract are on going, problems in the USWC are expected to worsen in the coming weeks.
Despite eight months of negotiations, the situation remains deadlocked and an intervention by US federal mediators, which began on January 5, has not yet produced positive results.
The gridlock is expected to add substantial costs for carriers as shipping lines scramble to deploy additional vessels as extra tonnage is needed to maintain sailing schedules and to re-position equipment stuck in US ports, according to Alphaliner.
Port congestion has induced carriers to inject 36 extra ships with a combined capacity of 233,000 TEU into the Far East-US west coast trade.
The diversion of cargo to US east coast ports has boosted demand in the Far East-USEC trade, with spot rates soaring to record highs.
As negotiations over a new labour contract are on going, problems in the USWC are expected to worsen in the coming weeks.
Despite eight months of negotiations, the situation remains deadlocked and an intervention by US federal mediators, which began on January 5, has not yet produced positive results.
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