When it comes to supply chain disruption, the records keep falling.  

The number of cargo ships at anchor or at berth at the sister ports of Los Angeles and Long Beach totaled 157 on Monday, Oct. 18, according to data from the Marine Exchange. It’s a record-breaking backlog at the pivotal ports through which flows 40% of imported cargo containers that enter the United States.

Meanwhile, the American Trucking Association reports that the trucking industry is in need of 80,000 drivers, a record-breaking shortage that represents an increase of about 30% compared to before the COVID-19 pandemic. 

The dearth of drivers and the port congestion, which has spread to other ports including Savannah, are key factors in the supply chain troubles that are contributing to inventory shortages in the promotional products market and other industries.

Supply chain experts in promo and beyond expect the disruption to last into 2022 at least – a point echoed by U.S. Transportation Secretary Pete Buttigieg. “Certainly a lot of the challenges that we’ve been experiencing this year will continue into next year,” Buttigieg told CNN.

He emphasized, however, that President Joe Biden’s infrastructure proposal could ultimately help alleviate pressures on ports and the trucking industry, as the proposal contains $17 billion for port infrastructure and hundreds of billions of dollars for transportation, which would include workforce development for the trucking industry.

Additionally, the Biden administration last week announced measures aimed at getting imported goods flowing more efficiently through U.S. ports, onto trucks and rail lines, and ultimately into warehouses and stores as the holiday shopping season heats up. Those initiatives include having the Port of Los Angeles operate 24/7.

This infographic by ASI Media showcases statistics that highlight supply chain challenges. Click here for larger PDF.  

Nonetheless, in the short term, the supply chain challenges remain. One example of the pickle importers are in comes in the port/trucking connection. Even if ports hire more people and work longer hours to get ships unloaded faster, there’s still not enough truckers to transport those goods to final destinations, given the labor shortage, some analysts have asserted.

The resulting backlogs lead to stock gaps in promo and retail, and are another factor contributing to inflation across markets in the U.S.

There was some good news for importers in the North American promo industry. Congestion at ports in China is reportedly easing, allowing for a freer flow of goods. Factories in China produce the majority of promo products sold domestically.

Furthermore, cargo container rates were down this week from the historic highs experienced in mid-September. The Freightos Global Container Freight Index reported that spot rates for a container from China/South Asia to the U.S. West Coast were $17,377 as of Tuesday, Oct. 19. While still exponentially higher than pre-pandemic $1,900 that some promo suppliers reported paying, the rate was down from Sept. 15 when it hit a record of $20,586, according to Freightos.