[The] fight between shipping companies and the dockworkers union, resolved last month, was only one of the causes of chronic congestion at the nation’s busiest seaport complex.
Sweeping changes in the global shipping industry have upended cargo trade at major U.S. ports. To cut costs, shippers have formed alliances to combine goods from multiple carriers on so-called megaships, some with nearly twice the capacity of traditional commercial vessels. That means each ship takes that much longer to unload.
At the same time, the shipping companies outsourced the management of truck trailers that carry shipping containers around the country. That transition did not go smoothly, by all accounts, creating a logistical nightmare that snarled traffic at Southern California ports long before labor talks broke down.
“In essence, the maritime supply chain has become unhinged,” said Jock O’Connell, an international trade economist with Beacon Economics. “You’ve got some fundamental problems that will take a long time to resolve.”
