Shipping ports across the U.S. are experiencing levels of prolonged Supply Chain congestion that are unpresented in modern history, The Financial Times reports. In the past 12 months alone, nine of those months count among the top 10 busiest months of the past 25 years. The Long Beach port alone moved 907,000 containers in May, which was the highest level recorded since 1995. Savannah, Georgia, meanwhile, reported moving 5.3 million containers in the past 12 months, a 20% increase from the previous fiscal year.

Although these ports are equipped to handle seasonal periods of congestion, such period have never lasted longer than the typical holiday season. Now, it appears, high levels of congestion are quickly becoming a new normal that ports simply do not have the infrastructure to effectively manage it.

However, although manufacturers are feeling the pressure, the consumer feels the impact most of all. Products ranging from electronics to groceries to gasoline to household products have seen surges in prices. According to the U.S. Bureau of Labor Statistics, consumer prices in June increased by 5.4% a year ago, which is a 13-year high that tops the 5% increase seen in May. Companies from General Mills to Kimberly-Clark (Kleenex) to Hasbro to Harley Davidson have announced price increases.

Obviously, these are decisions that no manufacturer takes solace in making, but often, especially in industries with thin profit margins, there is no choice but to do so. Without serious reformulation of the modern supply chain, levels of congestion — even as COVID-19 restrictions decline — will continue indefinitely.
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