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Retailers pay to fly goods from China as U.S. port backup delays deliveries

March 5, 2021
Reading Time:2 mins read
Retailers pay to fly goods from China as U.S. port backup delays deliveries

Containers are seen on a shipping dock, as the global outbreak of the coronavirus disease (COVID-19) continues, in the Port of Los Angeles, California, April 16, 2020.

Lucy Nicholson | Reuters

Companies such as Peloton are facing a costly logistical nightmare as record congestion at ports around the world cause delays.

Global shipping data from MarineTraffic showed a ship with 197 containers of Peloton bikes and merchandise circled at anchor just outside the Port of Los Angeles between Dec. 22 and Jan. 2., when it was allowed to dock — after Christmas.

“The ship, and Peloton’s expected supply time, lost 12 days due to this while their product was nearly within swimming distance of shore,” Import Genius trade data analyst William George said. “This is a crazy illustration of the problem Peloton and other U.S. importers are struggling with.”

The combination of a record number of containers arriving at the Port of Los Angeles — the busiest container port in the Western Hemisphere due to its proximity to Asia — and Covid-19 is slowing down imports to the U.S. Around 800 of the International Longshore and Warehouse Union’s 15,000 members have been out of work due to Covid, according to data from the union.

The congestion at ports has some companies forgoing maritime shipping in favor of airfreight to get popular or seasonal items on store shelves faster. Air rates are more expensive than shipping via ocean freight, but they’ve been dropping in recent months, according to…

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