3 HSBC charts show just how bad supply chain issues are right now

Supply chain constraints are affecting economies across the world, with trucking and shipping lines besieged by delays. A new note from HSBC illustrates just how bad the situation has become. Exporters and importers are "currently in the throes of the peak container shipping season," the bank stated in its September 30 note. And as demand vastly outstrips supply, there's a major backup that's causing widespread effects. For instance, the volume of goods traded between Asia to North America in the first seven months this year was nearly 1.3 times that of the same period pre-pandemic. Meanwhile, coronavirus restrictions have led to increased congestion. "As we look across the landscape, whether it be surface transportation here in North America or... on a global basis when we look at air and ocean, we continue to see challenges," Robert Biesterfeld, CEO of C. H. Robinson, a freight broker, told Yahoo Finance Live (video above). "We continue to see very, very strong demand in the market being met by a very constrained capacity environment." As the first chart below indicates, the most congested ports globally are the ports of Los Angeles and Long Beach. HSBC notes that at the time of writing, "there were 66 container ships waiting offshore to unload cargo and a further 30 at berth according to Marine Exchange of Southern California data." Waiting time for vessels to berth has gone up to over 10 days — last year, it was less than 2.

3 HSBC charts show just how bad supply chain issues are right now

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Supply chain constraints are affecting economies across the world, with trucking and shipping lines besieged by delays. A new note from HSBC illustrates just how bad the situation has become.

Exporters and importers are “currently in the throes of the peak container shipping season,” the bank stated in its September 30 note. And as demand vastly outstrips supply, there’s a major backup that’s causing widespread effects.

For instance, the volume of goods traded between Asia to North America in the first seven months this year was nearly 1.3 times that of the same period pre-pandemic. Meanwhile, coronavirus restrictions have led to increased congestion.

“As we look across the landscape, whether it be surface transportation here in North America or… on a global basis when we look at air and ocean, we continue to see challenges,” Robert Biesterfeld, CEO of C. H. Robinson, a freight broker, told Yahoo Finance Live (video above). “We continue to see very, very strong demand in the market being met by a very constrained capacity environment.”

As the first chart below indicates, the most congested ports globally are the ports of Los Angeles and Long Beach. HSBC notes that at the time of writing, “there were 66 container ships waiting offshore to unload cargo and a further 30 at berth according to Marine Exchange of Southern California data.”

Waiting time for vessels to berth has gone up to over 10 days — last year, it was less than 2.

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