Imagine a congested port where thousands of shipping containers stand motionless, resembling vehicles stuck in rush-hour traffic. These supply chain bottlenecks have left businesses scrambling and consumers waiting. In response to this challenge, FedEx has devised an unconventional solution: transforming empty import containers into tools to alleviate congestion.
A Creative Workaround
Udo Lange, CEO of FedEx Logistics, recently revealed plans to launch a new service in January that will sell capacity in empty 53-foot containers imported from China. These containers, arriving from southern Chinese ports (excluding Shenzhen) to West Coast U.S. ports north of Los Angeles and Long Beach, will help shippers bypass clogged ports. According to Lange, this service could save shippers up to 20 days in port-to-port transit time by avoiding bottlenecks at the San Pedro Bay ports.
Turning Waste Into Opportunity
The containers, ultimately destined for FedEx Freight's domestic less-than-truckload operations, were previously imported empty since they wouldn't be reloaded onto another vessel. "Now we can utilize that capacity by selling it to our customers and routing to smaller ports," Lange said.
This initiative represents FedEx's strategy to leverage its logistics scale to address supply chain issues. However, most attention remains focused on relieving congestion at the Los Angeles and Long Beach ports, which handle 40% of U.S. container imports.
The 24/7 Port Challenge
As a member of the White House Supply Chain Disruptions Task Force, Lange noted that FedEx was among several major companies that committed in October to extend port operating hours to improve throughput. However, fully utilizing off-peak hours requires synchronized operations across every supply chain link—from terminals to warehouses to drayage companies.
"This is a classic supply chain problem," Lange observed. "There are many players involved, and all pieces need to align to deliver a stronger value proposition." He emphasized that the transition to 24/7 operations at San Pedro Bay ports would be gradual rather than immediate.
Clearing the Backlog
Beyond extended hours, stakeholders are pursuing other solutions. Lange highlighted how empty containers occupying valuable terminal space exacerbated congestion at San Pedro Bay ports. He personally advocated for ocean carriers to deploy "sweeper ships" to remove empty containers—a measure that was eventually implemented.
Port officials confirmed progress: Los Angeles has already processed approximately 30,000 empty containers via 11 sweeper ships, with two more arriving this week. Long Beach expects seven sweeper vessels by year's end.
Financial Incentives Show Results
The threat of imposing container dwell fees at San Pedro Bay ports—designed to incentivize faster removal—has already yielded results. Since the fee's announcement on October 25, aging cargo at the ports has decreased by 37%. While existing port cargo remains affected, Lange noted significant improvement in dwell times for newly arrived FedEx containers.
Truck-transported containers now move within eight days, while most rail-bound containers relocate within three days—well below thresholds that would trigger penalties. These improvements come as multiple stakeholders contribute to supply chain solutions. The White House reported that 24/7 port operations have reduced containers idling over eight days by 40%, while Walmart increased its port throughput by 51% after adopting round-the-clock shipping.
"Everyone wants to move goods out," Lange concluded. "The lesson from port visits is that this requires more meticulous management than ever before."