The backup of container ships awaiting offloading at Southern California reached a record 73 ships last week. The ports of Long Beach and Los Angeles receive virtually all sea shipments from Asia, including AEC Magnetics’ permanent magnets from China. In fact, most all of the world’s permanent magnets are mined, processed and produced in China.
While the Port of Long Beach has responded to the Biden administration’s request to adopt 24-hour gate operations at least four days per week, the Port of Los Angeles is holding back, instead focusing on boosting efficiency in its operations. The port director said there is slack in the system connecting in- and out-bound containers to trucks serving inland distribution points; for instance, approximately 30% of trucking appointment slots for transferring cargo go unused each day. The Port of Los Angeles intends to extend operating hours only when trucking, warehousing and other industries also move toward 24-hour operations. At neighboring Long Beach, which runs side-by-side yet independently to Los Angeles, 24-hour operations have begun as a response to encouragement from the White House. Calling its response “bold and immediate,” Long Beach believes its move to 24-hour operations is an important step toward persuading trucking companies, freight railroads and importers to work longer hours too. .
The neighboring ports are choke points in global supply chains that have swamped logistics networks. Though they are processing more than 20-percent more containers than they were before the pandemic, Covid-19, the size of the new Panamax container ships, weather, containers stuck in the wrong ports and labor have snarled shipping, caused shortages and backed up supplies affecting manufacturers, consumers and everything imported.
“This is not limited to seagoing cargo,” said Bill Klaus, president of Cincinnati, Ohio-based AEC Magnetics. The backup is all along the transportation chain. Trucks, trains, distribution centers, local deliveries are all affected.” AEC has a dedicated staff monitoring each shipment and has the capability to carefully track items incoming to, and outgoing from, AEC, but it can be frustrating. “There is not a manufacturer or business untouched by this unprecedented situation, but we are well positioned to meet our customers’ needs at this time.” Klaus emphasizes that AEC Magnetics always has someone who will speak direction to customers, listen to their concerns, answer questions and be there to support them through out the process. "AEC Magnetics has real, live people who are glad when customers call. We are different than most, we enjoy interacting with our customers."