Non-Essential Cargoes Competing for Essential Cargo Space

In a story covered by The Journal of Commerce on March 27, growing volumes of non-essential cargo, such as furniture, mattresses and toys, are competing for space with essential cargoes, such as COVID-19-related medical supplies and protective gear, at several major U.S. container ports, particularly along the East Coast.

Space demand is growing as some retailers and manufacturers fail to pick up containers because warehouses are full or closed due to not being deemed “essential service providers” responding to COVID-19, or because retailers have requested delayed deliveries at distribution centers.

Although the situation hasn’t yet reached the critical point, ports are warning that because all U.S. import gateways may be simultaneously facing the same situation, a bottleneck of national proportions may be beginning to take shape.

“Some lines are also asking what-if scenarios. For example, if a port in the vicinity closes for a COVID-19 outbreak, can cargo be diverted to a nearby port? Terminal capacity isn’t that redundant, and it’ll be difficult for some ports to accept discharge of cargo bound for another port putting at risk their own capacity,” said Matthew Leech, CEO and managing director of the Americas at DP World.