Shipping Challenges: Summer 2022 Update

August 2022

Healthcare distributors have seen no reprieve from the delays and backlogs currently harming the medical supply chain. Recent headlines show an evolving challenge that is likely to worsen in the coming months.

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Ocean

Cargo ship
Industry Professionals Sound Alarm About Autumn Shipping Delays
  • As China eases COVID restrictions, retailers and manufacturers are set to begin their seasonal rush of importing ahead of the fall and end-of-year holidays.
  • Three-quarters of shipping industry professionals surveyed say this year’s peak shipping season will be as bad or worse than 2021.
  • The estimated value of cargo waiting offshore exceeds $40 billion.

Ports

Shipping port
Shipping Delays Spread To East Coast
  • Long-dwelling containers are increasing at ports. The number of import containers sitting on Long Beach terminals for nine days or more is now higher than it was in October 2021.
  • The epicenter of port congestion has shifted, with 36% of waiting ships off West Coast ports, compared to 64% off the East and Gulf Coast ports.
  • Savannah, Georgia, now has the largest ship queue in North America.

Rail

Rail cargo
Unprecedented Delays From Los Angeles To Chicago
  • 60% of all long-dwell containers at the Port of Los Angeles are rail-bound.
  • In June, 29,000 boxes were being held in container yards at the Port of Los Angeles awaiting pickup by rail, more than triple the usual number.
  • Rail containers are sitting about 20% longer in freight-switching yards in Chicago compared with a year ago.
Sources: Wall Street Journal, CNBC, Freight Waves

Find more resources about the healthcare supply chain on HIDA’s Understanding Healthcare Distribution page.