Datastream
Visualizing Congestion at America’s Busiest Port
The Briefing
- There are an estimated 540,000 shipping containers waiting in queue at the Port of Los Angeles
- The port has been unable to keep up with increased shipments from overseas suppliers
The Busiest Port in America: Los Angeles
U.S. e-commerce grew by 32.4% in 2020—the highest annual growth rate in over two decades. Such rapid growth has resulted in many more goods being imported, leaving America’s western ports completely overwhelmed.
To help you understand the scale of this issue, we’ve visualized the number of containers waiting at sea in relation to the Port of Los Angeles’ daily processing capacity.
Stuck at Sea
As of November 2, 2021, the Port of Los Angeles reported that it had 93 vessels waiting in queue. Altogether, these ships have a maximum carrying capacity of roughly 540,000 containers (commonly measured in twenty-foot equivalent units or TEUs).
On the other side of the equation, the port processed 468,059 import containers in September (the most recent data at the time of writing). Because the port does not operate on Sundays, we can conclude that the port can load roughly 18,000 containers each day.
That capacity seems unlikely to reduce the congestion. Over a two-week timeframe in September, 407,695 containers arrived at the Port of Los Angeles, which averages to around 29,000 containers arriving each day.
| Figure | Approximate Number of Containers |
|---|---|
| Current backlog | 540,000 |
| Daily import arrivals | 29,000 |
| Daily import capacity | 18,000 |
| Daily increase in backlog | 11,000 |
What’s Being Done?
Solutions are needed to prevent the backlog from causing massive economic harm. In fact, analysts believe that up to $90 billion in trade could be delayed this holiday season.
In October, the Biden administration announced a deal to expand operations at the Port of Los Angeles, enabling it to run 24/7. The port also announced it will begin charging carriers for every container that sits idle over a grace period. While only temporary, this plan has drawn criticism for its unclear objective.
“The fee is on the ocean carrier, but the control over when the cargo is to be picked up sits with the cargo recipient. Having the ocean carrier pay more does nothing to encourage the cargo interest to pick up the cargo.” – World Shipping Council
Regardless of the outcome, more permanent solutions will be required as online shopping continues to gain popularity.
Where does this data come from?
Source: Marine Exchange of Southern California, Port of Los Angeles, Freight Waves
Data Note: These figures are based on approximations and should not be interpreted as exact.
10/11/21 Update: This infographic was updated to include the number of import containers loaded by the neighboring Port of Long Beach.
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Datastream
Ranked: These Are 10 of the World’s Least Affordable Housing Markets
An analysis of 90+ major cities reveals which ones are the least affordable housing markets based on their price-to-income ratio.
The Briefing
- For the 12th year in a row, Hong Kong is the world’s least affordable housing market, according to Demographia’s ranking of 92 cities in select countries
- Sydney, Australia moves up one spot from last year’s ranking to take second place
These Are 10 of the World’s Least Affordable Housing Markets
It’s become increasingly difficult for middle-class families to purchase a home over the last few years—and the global pandemic has only made things worse.
According to Demographia’s 2022 Housing Affordability Report, the number of housing markets around the world deemed “severely unaffordable” increased by 60% compared to 2019 (prior to the pandemic).
This graphic looks at some of the least affordable housing markets across the globe, relative to median household income. The report covers 92 different cities in eight nations: Australia, Canada, China, Ireland, New Zealand, Singapore, the United Kingdom, and the United States.
The Least Affordable Housing Markets
Before diving in, it’s worth outlining the methodology used in this report, to help explain what’s classified as a severely unaffordable housing market.
To calculate affordability, a city’s median housing price and divided by its median household income. From there, a city is given a score:
- A score of 5.1 or above is considered severely unaffordable
- 4.1 to 5.0 is considered seriously unaffordable
- 3.1 to 4.0 is considered moderately unaffordable
All the cities on this graphic are classified as severely unaffordable—and, for the 12th year in a row, Hong Kong takes the top spot as the world’s most unaffordable housing market, with a score of 23.2.
| Housing Market | Nation | Score |
|---|---|---|
| Hong Kong | 🇭🇰 Hong Kong (SAR) | 23.2 |
| Sydney, NSW | 🇦🇺 Australia | 15.3 |
| Vancouver, BC | 🇨🇦 Canada | 13.3 |
| San Jose, CA | 🇺🇸 U.S. | 12.6 |
| Melbourne, VIC | 🇦🇺 Australia | 12.1 |
| Honolulu, HI | 🇺🇸 U.S. | 12.0 |
| San Francisco, CA | 🇺🇸 U.S. | 11.8 |
| Auckland, AUK | 🇳🇿 New Zealand | 11.2 |
| Los Angeles, CA | 🇺🇸 U.S. | 10.7 |
| Toronto, ON | 🇨🇦 Canada | 10.5 |
One reason for Hong Kong’s steep housing costs is its lack of supply, partly due to its lack of residential zoning—which only accounts for 7% of the region’s zoned land. For context, 75% of New York City’s land area is dedicated to residential housing.
Sydney moved up one spot this year, making it the second most expensive city to purchase a home on the list, with a score of 15.3. Besides Hong Kong, no other city has scored this high in the last 18 years this report has been released.
There are several theories for Sydney’s soaring housing rates, but industry expert Tom Forrest, CEO of Urban Taskforce Australia, boils it down to one fundamental issue in an interview with Australia Broker—supply isn’t keeping up with demand:
“Housing supply has been consistently not meeting demand in the Greater Sydney and across regional New South Wales…if you have supply consistently not meeting demand then the price will go up. That’s what happened and we’re seeing it in abundance.”Tom Forrest, CEO of Urban Taskforce Australia
The COVID-19 Impact
Middle-income earners were already feeling the squeeze prior to the global pandemic, but COVID-19 only exacerbated housing affordability issues.
As people began to work from home, high-income earners started to look for more spacious housing that wasn’t necessarily in the city center, driving up demand in suburban areas that were relatively affordable prior to the pandemic.
At the same time, supply chain issues and material costs impacted construction, which created a perfect storm that ultimately drove housing prices up.
But with interest rates rising and COVID-19 restrictions easing around the world, some experts are predicting a market cool down this year—at least in some parts of the world.
>>Like this? Then you might like this article: How Much Prime Real Estate Could You Buy for $1M?
Where does this data come from?
Source: Demographia
Details: The affordability score is calculated by taking a city’s median housing price and dividing it by the median household income. Anything over 5.1 is considered severely unaffordable
Notes: Data includes 92 metropolitan markets across eight countries; Australia, Canada, Ireland, Singapore, China, New Zealand, the U.K., and the U.S., as of the third quarter of 2021. Many European countries, along wth Japan, we excluded from the dataset, because information on median income was not readily available.
Datastream
Poll: Inflation is the Top Financial Concern for Americans
Many Americans are feeling the sting of inflation as everyday items like food and fuel have seen big price increases.
The Briefing
- Inflation has quickly become the top financial concern for American families
- Compared to 2021, far fewer Americans believe their financial situation is improving
Poll: Inflation is the Top Financial Concern for Americans
A recent survey by Gallup discovered that inflation has become the top financial concern for Americans, surpassing other issues like low wages and housing costs.
While this result may not be too surprising, it is interesting to see how today’s concerns compare to that of previous years. For reference, the Consumer Price Index (CPI) has grown 8.3% between April 2021 and April 2022, representing a near 40-year high.
Poll Results
Results were collected in April 2022 and are based on the responses of over 1,000 U.S. adults. In this case, the specific question was: What is the most important financial problem facing your family today?
| Trend | April 2022 | April 2021 | April 2020 | April 2019 |
|---|---|---|---|---|
| Inflation | 32% | 8% | 3% | 6% |
| Low wages | 11% | 10% | 11% | 11% |
| Gas prices | 10% | 1% | -- | -- |
| Housing costs | 8% | 9% | 9% | 8% |
| Health care costs | 7% | 8% | 8% | 17% |
Percentage of respondents. Includes the top five categories, based on April 2022 results.
Based on these results, we can see that inflation began to gain momentum in early 2021. Rising gas prices, which are a significant contributor to overall inflation, also popped up in 2021.
Implications
Significantly fewer Americans feel confident about their financial situation due to the rising cost of living. This was captured in the same Gallup survey referenced above.
| Income Group | 2022 | 2021 | Percentage point decrease |
|---|---|---|---|
| Upper | 50% | 28% | -22 |
| Middle | 48% | 39% | -9 |
| Lower | 63% | 45% | -18 |
Percentage of respondents who say their personal financial situation is improving.
The largest decreases were seen among the upper and lower income groups.
Upper income families tend to own more financial assets like stocks and bonds. An inflationary environment, especially when combined with rising interest rates, can eat away at the returns generated by these assets, which could explain this cohort’s drop in optimism.
Lower income families, on the other hand, are more likely to be struggling already. In fact, a 2017 report found that six in 10 Americans don’t have $500 in savings. With this in mind, it’s easy to see how an increase in the price of food or gas could cause worry.
Where does this data come from?
Source: Gallup
Notes: Interviews conducted April 1-19, 2022, with a random sample of 1,018 adults, aged 18 and older, living in all 50 U.S. states and the District of Columbia. For results based on the total sample of national adults, the margin of sampling error is ±4 percentage points at the 95% confidence level.
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