As per MarineTraffic, a leading supply chain intelligence firm, the productivity of ground ports on the West Coast has been dramatically impaired due to the paced work strategy by the International Longshore and Warehouse Union (ILWU). This has led to what the firm terms as a “noteworthy upswing” in the number of containers on standby outside the limits of the ports.
For the week of June 5, at the Port of Oakland, the mean ton equivalent units (TEUs) awaiting off the port limits had escalated to 35,153 from 25,266, as stated by MarineTraffic. Simultaneously, for the Port of Los Angeles and Long Beach, California, there was a rise in the average TEUs on standby off the port limits to 51,228, up from 21,297 the previous week, according to a spokesperson from MarineTraffic.
— Jim Bianco (@biancoresearch) June 11, 2023
When assessed on the basis of an average value of $61,000 per container, the cumulative worth of the 86,381 containers in limbo off the coasts of the Oakland, Los Angeles, and Long Beach ports is estimated to be around $5.2 billion, according to customs data.
Exclusive data compiled for CNBC by Vizion, a company that specializes in container shipment tracking, revealed the seven-day rate for a container cleared through the Port of Oakland at 58%; at the Port of Long Beach at 64%; and at the Port of Los Angeles at 62%.
Kyle Henderson, the CEO of Vizion, stated, “Our analysis suggests that vessels will persist in their arrivals at West Coast ports over the imminent days with substantial cargo to unload.” He went on to indicate that, currently, there are no signs that ocean carriers intend to annul any sailings to these ports. However, he cautioned, “If these labor disputes persist in their impact on port efficiency, we may be looking at backlogs akin to those experienced during the pandemic. Clearly, that is an outcome that every shipper wishes to avoid as we transition into the latter half of the year and the peak season.”
The fight is sparking concerns among lawmakers who worry surging container prices could ripple through the economy and hit all sorts of consumer goods in a repeat of supply chain problems following pandemic shutdowns. https://t.co/cLRh6tC5qK
— Yahoo News (@YahooNews) June 9, 2023
Informed logistics managers have intimated to CNBC that the union’s rank-and-file, dissatisfied with unresolved negotiation issues with port management, have influenced the work shifts. Furthermore, at certain port terminals, requests for additional labor through official work orders are not being made visible for fulfillment at the union hall. The Pacific Maritime Association (PMA), which represents the ports in negotiations, is not permitted to verify whether these terminal orders are indeed being requested. If these additional job postings were made, data would show they are not being filled, with only the original labor ordered from the PMA being fulfilled.
In a statement issued on Friday afternoon, the PMA stated that from June 2 to June 7, the ILWU at the Ports of Los Angeles and Long Beach declined to dispatch lashers who secure cargo for trans-Pacific voyages and unfasten cargo after the vessels’ arrival. This resulted in ships idling and unable to load or unload, leaving American exports stranded at the docks.
The ports of Seattle and Tacoma are seeing significant slowdowns as a labor dispute drags on. That could potentially cause supply-chain problems. https://t.co/WIJvyPLS1j
— The Seattle Times (@seattletimes) June 10, 2023
The PMA reported on Wednesday morning that out of the 900 jobs ordered at the Ports of Los Angeles and Long Beach, 260 went unfilled. Overall, 559 registered longshore workers who showed up at the dispatch hall were denied work by the union, as stated in the PMA’s release.
The PMA stated that the ILWU’s decision to cease the withholding of labor has temporarily averted a cascading effect that would have led to backups reminiscent of last year’s supply chain collapse.
While operations have reportedly improved at the Ports of Los Angeles, Long Beach, and Oakland, significant slowdowns continue at the Ports of Seattle and Tacoma, according to the PMA. The ILWU has not provided any comments due to a media blackout amid ongoing labor negotiations.
In the face of these challenges, companies are growing increasingly wary about the possibility of needing to seek alternative supply chain strategies. A spokesperson for Cargomatic, a California-based drayage and short-haul trucking logistics firm, stated that while trade diversions are not yet evident, “As a national drayage partner, we have contingency plans built in with capacity ready to service our customers anywhere in the U.S. We understand that shippers are extremely apprehensive and it’s only a matter of time before they pivot if this situation becomes protracted.”
Adding to the dilemma, the PMA revealed that even though some port operations have improved, “the ILWU’s repeated disruptive work actions at strategic ports along the West Coast are increasingly causing companies to divert cargo to more customer-friendly and reliable locations along the Gulf and East Coasts.”
West Coast ports, which have recently started to recover volume after losing a significant amount to East Coast ports over the past year due to instability in the labor contract discussions, now face new challenges.
To conclude, let us ponder on the words of Peter Drucker, a renowned management consultant, “Efficiency is doing things right; effectiveness is doing the right things.” In this case, it’s clear that efficiency in operations is of the essence, or, as logistics expert, M. Christopher Roach, wisely said, “A well-run supply chain is like a well-oiled machine: all parts working in harmony to move goods from one place to another efficiently and effectively.” We hope that all involved parties can work towards a solution that benefits all, from the workers on the docks to the companies waiting for their cargo.
WARNING WEST COAST – Supply Chain HAS STOPPED! | Prep Now SHTF Big time warning along the west coast from Seattle, Washington ports all the way down to Long Beach ports with Asian shipping companies, many cargo ships are waiting off the coast line and not moving with Seattle Washington port shut down completely, will this create a supply chain that has stopped. Should we prep now for SHTF? This is the news reported on CNBC news probably on Fox News as well and many preppers are prepping for SHTF and emergency preparedness with this news regarding ports. Continued below the video
This is the proper news and the SHTF news in the Prepping news that people are watching on Fox news, CNBC regarding the port stoppage and the, California ports slowing down, and the Seattle port stopped, many people are learning of this through other, YouTube channels like the economic ninja the epic economist, redacted, learning about the weather through Ryan Hall updates from Citi Prepping and Canadian Prepper, and learning a lot from the Economic Ninja Aswell many Preppers have Preparedness on mind they’re stocking up their pantry, their prepper pantry in 2023 due to possible food shortage prepping for food shortages in 2023. Have you seen any food shortages? These ports getting shut down and slowing down could result in Walmart food shortages the Seattle port has stopped for various reasons reported in this news article definitely going to affect the supply chain crisis in 2023 for many this is breaking news. This is world news as it’s our shipping from Asia to the United States on the Pacific coastal shipping route, so many people are prepping for 2023 watching channels like a Alaska prepper Southern Prepper 1, full spectrum survival, trying to get an idea of crisis and what’s going on in the world today with news and world news so you may consider prepping now definitely time to prep now
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