SIMIC

As containers clog the ports, local streets, and seemingly any unused lot around the coast, both California Governor Gavin Newsom and Long Beach Mayor Robert Garcia have jumped into action alleviating red tape that had curtailed storage options.

Mayor Garcia waived an ordinance that prohibited stacking containers more than two high. Now the limit is four - or five with special approval. Also last week, Mr Newsom ordered the state to search for government or privately owned parcels to lease for additional storage.

"A year ago, you would just do a transaction, bring an empty in and get a load out on the same chassis," said a trucker named Brian. "Now ports are not accepting empties because they are not going back on the ships. We're told the ships cannot make money on the empties."

Meanwhile, in China, bicycle maker Derrick Tian spent weeks searching for a container to export his products to United States stores in time for Black Friday and Christmas. His small business has been crippled by Covid lockdowns, and now he fears that a long list of orders will be jeopardised by a container shortage.

"The biggest problem is to get your goods out of China," Mr Tian said.

The lack of containers in China creates another problem: skyrocketing shipping costs that are eventually passed on to the consumer.

"We have a full-blown container crisis on our hands," admitted freight transporter Hillebrand on its website. The company said China was the first to recover from Covid and started shipping in large numbers before America had recovered. Another problem is the lack of financial incentive for shipping companies to return the containers. Carriers get 66 cents per nautical mile from Shanghai to Los Angeles but only 10 cents for a return trip, Hillebrand said.

So while China ramps up its production of new containers to meet the demand, even more of these metal boxes are headed toward Los Angeles from the South.