Ship Backup Off Port of Charleston Swells to 30 Vessels

The supply-chain disruptions that have plagued U.S. importers for over a year are now creating congestion at the Port of Charleston in South Carolina, one of the busiest ports on the East Coast. The backup of container ships waiting to unload at Charleston has increased to 30 vessels, up from 19 vessels last month, exacerbating delays for U.S. importers and logistics companies.

Growing Congestion at the Port of Charleston

According to Jim Newsome, head of the South Carolina Ports Authority. By mid-April the backlog at the Port of Charleston is expected to clear. An adjustment from his earlier prediction that the congestion would ease by mid-March.

“There’s really not a minute except for when a ship leaves and when a ship comes that the berth is empty,” said Newsome. “They’re working. But the productivity is not what it could be when a terminal is full like this.” He explained that vessels are staying longer as containers are loaded and unloaded, further contributing to the delays.

The Port of Charleston, which ranks as the fourth-busiest gateway for container imports on the East Coast, has been struggling with increased volumes as importers seek alternatives to the heavily congested West Coast ports of Los Angeles and Long Beach. Despite some improvement at those California ports, with the number of ships waiting dropping to 72 from a peak of 109 in January, the congestion remains far from resolved.

Increased Demand and Supply Chain Challenges

The surge in import volumes is largely due to efforts by retailers to restock depleted inventories and meet strong consumer demand, a trend that has strained freight-handling equipment, warehouse space, and trucking capacity. Last year, the Port of Charleston handled a record 1,294,901 imported containers, measured in 20-foot equivalent units (TEUs), marking a 25.4% increase over the previous year. Many other East Coast ports also reported significant growth in inbound cargo volumes, exceeding 20% year-over-year.

This surge in imports began forming a backup at Charleston around Thanksgiving as retailers sought to divert cargo from overwhelmed West Coast ports to East Coast alternatives, leading to similar congestion at ports like Georgia’s Port of Savannah. In September, Savannah experienced a backlog of around 30 vessels, but conditions improved after the port expanded its onshore container storage capacity.

Workforce Impact of the Omicron Variant

Charleston’s shipping backlog worsened in January as the Omicron variant of COVID-19 swept through the port’s workforce, reducing available labour and contributing to slower operations. During the height of the outbreak, the port sent home around 10% of its 250 hourly lift operators due to illness.

As a result, the number of containers sitting at the port for more than 15 days increased significantly. According to Newsome, there are currently about 7,500 containers waiting for inland transport, compared to fewer than 1,000 containers in 2019 and 2020. “We have four times the import containers on our terminals than we had back in 2019, 2020,” he said. “That’s an incredible backup of cargo.”

Challenges Facing Logistics Partners and Importers

The congestion at the Port of Charleston, combined with similar challenges at other U.S. ports, underscores the ongoing difficulties that logistics partners and importers are facing. With ports reaching maximum capacity, delays are becoming inevitable, creating further bottlenecks in the supply chain. Global logistics partners are feeling the pressure to adjust strategies in order to manage this growing challenge.

Companies like cargo partner logistics India and worldwide logistics partners must now navigate longer wait times, increased costs, and the risk of further disruptions caused by labor shortages and shipping delays. The best chemical tanker shipping companies and others operating in bulk logistics face the added burden of coordinating inland transport as the sheer volume of imports continues to outpace the available infrastructure.

Conclusion

The shipping backlog off the Port of Charleston is emblematic of the broader supply chain challenges that have plagued global trade over the past two years. With increased import volumes, labor shortages, and congestion at multiple U.S. ports, the delays in moving goods are unlikely to abate quickly.

As retailers and logistics partners work to overcome these challenges, ports like Charleston will remain critical hubs in the effort to keep goods moving across the country. Until the supply chain bottlenecks ease, however, congestion will continue to be a key issue, affecting businesses and consumers alike.