What is happening: Ports on the West Coast are seeing containers sitting for far longer than usual, pushing warehouses to near capacity. This is according to an MIQ report.
Why is this happening: It is thought that the increased volume is a result of strong markets and tariffs.
When is this happening: Congestions may continue until early February.
Tariffs: It seems companies are still rushing to get imports in ahead of a late potential tariff shift from 10% to 25% on $200 billion worth of goods from China.
Warehouses: LMI data shows that warehouse utilization was down in November from the months before, but still very high at 72.6%, compared to January/February levels of 63.7%.
What did MIQ say: “Vessels are calling terminals outside of the normal alliance pattern. Warehouses across the region have all but reached capacity.”