I often get asked by clients, business associates, and friends when the ports in Southern California will return to normal. I don't have a crystal ball, but I do unfortunately believe that it may well be into 2023 or longer.
Here are several reasons for my speculation:
-Operating the ports 24/7 has only moved the bottleneck of freight.
-Containers are sitting onshore waiting to be moved by truckers or put on the rail.
-The truck driver shortage in the US continues.
-California requires trucks picking up freight to meet stringent evinronmental standards.
-Covid, cold and flu continues to cause issues with labor.
The upcoming Chinese New Year will slow inbound shipments which may help.
But the big looming issue is the ongoing Longshoreman contract negotiations. If you have been around importing and exporting for a while, then you know that this is a real risk. If you haven't been around importing or exporting for a while, then I will give you a brief overview. The Longshoreman Union will use every tactic to create leverage in their contract negotiations. This includes slowdowns, sickouts, and a strike. The last contract negotiations were 8 years ago so you can expect it to get messy as we get closer to summer. This will only impact inventory flowing through the ports more than it currently is.
So now to my question... is there a "Fast Pass" to skip the line at the West Coast ports?
The answer is "YES"!
How? Mexico!
If Mexico is an option, why don't companies use it?
It was only within the last 18+ months that a solution was needed. Large companies like Amazon chartered their own vessels with cranes where they can bypass Long Beach. Many companies are using different ports going through the Panama canal. But, this takes time as well.
Mexico is a logical solution but until recently, a process hasn't existed to import from Asia into the US through Mexico. If you have asked your customs broker to help go through Mexico, they have likely told you it can't be done.
There are only two companies, that we know of, that are importing into the US through Mexico. We have partnered with one of those companies.
Cross-Boarder and Mexico Service Locations
If you are struggling with the congestion on the West Coast impacting your inventory flow, feel free to reach out to us. The solution may not fit every situation, but we would still love to talk and see if it makes sense to have a deeper conversation.
