While it’s usually the ports of Long Beach and LA that are under the spotlight for congestion issues, major congestion has been hitting several U.S. ports for quite some time now. In most recent news, the port of Savannah isn’t looking so great.
Recent reports show that delays are up to 8 to 10 days for ships waiting off the coast of Savannah to be berthed and unloaded. With these major delays in mind, a few carriers have decided to suspend several services to the port.
CMA CGM & Hapag Lloyd Savannah Decision
Two carriers just came out with news that they are suspending some services to Savannah (entirely because of the situation at the port.)
CMA CGM’s “Amerigo” service is one that connects the Western Mediterranean to the East Coast of the United States. The choice is being made in light of protecting the schedule integrity and sailing frequency of their ships. Shippers have especially learned the importance of protecting sailing frequency in the unfoldings at the ports of Long Beach/LA, where 70 container ships awaited unloading at one point.
CMA CGM is planning on rerouting cargo to the port of Charleston. The CEO and South Carolina Ports Authority president stated that Charleston still has plenty of room for extra cargo handling, as they invested in the right infrastructure at the right time.
Likewise, Hapag Lloyd’s Atlantic Loop 3 which services Savannah will also be suspended. They are planning on rerouting their cargo to Jacksonville, Florida, where congestion is a bit lower and more sustainable. Hapag Lloyd’s decision was made after a statement that they needed “to optimize our service portfolio, stabilize schedules and adapt to market needs.”
This news about Savannah comes as no surprise. Not only are LA/Long Beach under fire – New York, Savannah, and several others are feeling the heat of increased imports, peak season, and record breaking consumer demand.
Luckily, the location and operations happening at both Charleston and Jacksonville are giving some relief to surrounding ports along the east coast of the U.S. These ports are well equipped to handle the surge in cargo and re becoming a safe haven for several carriers as they search for the best solution to alleviate the delays being caused by the congestion at all other U.S. ports.