The growth in container throughput at California’s neighboring ports of Los Angeles and Long Beach slowed sharply in May, WSJ Logistics Report’s Erica E. Phillips writes, even as imports at Georgia and Virginia jumped at a rapid rate.
The gap opened as the number of megaship arrivals at the West Coast ports has doubled since the beginning of the year. The apparent shift in Asia-US supply chain routes comes after two new global shipping alliances launched in April, reducing the number of major alliances from four to three, which are deploying more megaships on major routes. The Georgia and Virginia port authorities hosted their first megaship in May--a 13,000-TEU COSCO vessel that was the largest container ship to transit the Panama Canal since its expansion. The arrival of bigger ships on the East Coast together with the shake-up in the shipping industry may be triggering a new structure in volume flows for the ocean lines and their customers’ supply chains.