The COVID-19 pandemic could permanently alter container transportation practices and the whole supply chain, while fewer container ships would likely mean less cargo at the Port of Oakland this spring. This was the key message of Oakland maritime officials speaking to the Harbor Trucking Association last week.
Shipping lines may consolidate more cargo on bigger ships while reducing the frequency of voyages. Supply chains could change too. For example, the online purchasing explosion prompted by shelter-in-place orders may hasten distribution center reconfiguration or consolidation.
Meanwhile, distribution hubs could be relocated to more central locations to serve population centers from fewer outlets.
As a result of COVID-19 stunting global trade, 20 May and June voyages to Oakland have been scrubbed, resulting to a 5-to-15% drop in containerized cargo volume heading into summer, the port told freight haulers via teleconference.
About 10% of our scheduled vessel arrivals have been canceled by shipping lines, but we don’t know if that will translate into a similar drop in volume,
…said Port of Oakland Business Development Manager Andrew Hwang.
With consumer spending down, there’s less merchandise to load onto ships. That means need for fewer vessels between Asian manufacturing centers and US ports.
As such, import volume is to suffer the biggest cargo decline in coming months, the Port said.
Demand for Oakland exports remains strong, but voyage cancellations could place some markets beyond reach, the Port explained. As a result, cargo is moving smoothly through Oakland.
