World Shipping Crisis Update January 2022

Since the beginning of the shipping crisis, the port of Los Angeles has been one of the most hard-hit places in the world in terms of port congestion. To tackle this issue, on January 10, the governor of California, Galvin Newsom, announced the 2022-2023 state budget proposal, which included a record investment of $2.3 billion for California Ports. 

The plan includes $1.2 billion for port infrastructure and goods movement, $875 million for zero-emission port equipment and infrastructure, $110 million for workforce training, $40 million for commercial driver licenses, and $30 million for operational and process improvements.

Across the Pacific Ocean, the short-term outlook for the global supply chain is uncertain as trucking restrictions as an outbreak of COVID cases near one of the world’s largest ports, Ningbo, is threatening to slow down activity. 

Bloomberg reports that these strict controls on carrying goods into the area may cost the economy $4 billion a week. Maersk, a leading global container company, released an update on the Port of Ningbo situation.