Los Angeles, Long Beach port terminals shut down due to labor issues
Excerpted from SupplyChainDive.com, April 7, 2023
Terminals at the Port of Los Angeles and Port of Long Beach have effectively shut down as a result of a local longshore labor action that began Thursday evening.
The Pacific Maritime Association, which represents West Coast port employers, said a local union at the twin ports withheld some labor for the evening shift on Thursday, leading to widespread labor shortages that halted operations. The actions have continued, leading to closures on Friday morning as well.
“The action by the Union has effectively shut down the Ports of Los Angeles and Long Beach – the largest gateway for maritime trade in the United States,” the PMA said in a statement.
Port of Long Beach Executive Director Mario Cordero said in a statement four of the port’s container terminals are closed for the full day, noting that terminal operators shut down after workers did not report for the day.
“We have no further information as to the situation, but it is expected that normal, regularly scheduled hours and operations will resume tomorrow,” said Cordero.
The Port of Los Angeles said in a statement it is working with stakeholders, including federal officials, to “support a return to normal operations in the San Pedro Bay.”
The International Longshore and Warehouse Union, which represents dockworkers across the West Coast, declined to comment, referring inquiries to ILWU Local 13. The local union did not immediately reply to a request for comment.
Port disruptions come at a tough time for the nation’s largest port complex, which continues to lose market share as shippers shift volumes elsewhere to avoid potential disruption from ongoing negotiations. While union leaders and port employers had insisted no major disruption would result from the talks, a lack of an enforceable contract has led to smaller disputes and other limited disruptions over the past year.
“These actions undermine confidence in West Coast ports and threaten to further accelerate the diversion of discretionary cargo to Atlantic and Gulf Coast ports. The health of the Southern California and state economy depend on the ability of the Ports of Los Angeles and Long Beach to stem this market share erosion,” the PMA said.
Several logistics providers have warned their customers of potential delays and disruptions in light of the action at the San Pedro Bay ports.
“If your container was scheduled to be pulled last night, today, or over the weekend, expect delays in pulling the container. If your empty has not yet returned, expect delayed empty returns and unfortunately additional charges,” Ian Weiland, chief operating officer at Junction Collaborative Transports, said on LinkedIn.
Maersk, meanwhile, said in a customer advisory four of its vessel services — TP6 Maersk Eureka, TP8 Maersk Antares, WCCA Maersk Newcastle and TP2 MSC Livorno — had been affected by the work actions. The ocean liner said that ILWU Local 13 crane operators and top handler drivers “decided to reject their job assignments that were ordered by the employers for the evening’s second shift, impacting all Los Angeles and Long Beach terminals.”
Port disruption also come ahead of Easter Sunday on April 9, which is an ILWU holiday. At least one terminal, Long Beach Container Terminal, has marked its truck gates as closed for the holiday.
Sarah Zimmerman contributed to this story.
FOR IMMEDIATE RELEASE: February 23, 2023
Contacts:
PMA: news@pmanet.org, 415-576-3244
ILWU Coast Longshore Division: Jennifer Sargent Bokaie, jennifer@ilwu.org, 503-703-2933
ILWU-PMA Update on Contract Talks
SAN FRANCISCO, CA (February 23, 2023) – The international Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) announced today that they continue to negotiate and remain hopeful of reaching a deal soon. The parties have agreed not to discuss negotiations in the media as collective bargaining continues.
Negotiations for a new collective bargaining agreement covering more than 22,000 dockworkers at 29 West Coast ports began on Tuesday, May 10, 2022, in San Francisco. The parties have reached a tentative agreement on certain key issues, including health benefits, and remain committed to resolving remaining issues as expeditiously as possible. Talks are continuing on an ongoing basis until an agreement is reached.
Negotiations are not open to the media or the public, and news articles purporting to know what is happening at the bargaining table are speculative at best. During negotiations, West Coast ports have continued to operate.
Did you know:
General insurance policies rarely cover marine cargo claims. You need a marine cargo insurance policy, or you may need to purchase marine cargo insurance on each shipment.
Many carriers will not take responsibility for loss or damage if a warehouse signs off clean on a POD. It is critical, before signing a POD, to note the condition of the cargo. Claims are usually time-barred, unless filed within a few days (standards vary by carrier). So alert your carrier to possible damage immediately. The best way to do this is by signing the delivery receipt notating damage! And be specific, for example, 8 glasses broken, 10 boxes crushed (Make ensure that you have the correct boxes or pallet count).
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Global trading involves risk; however, marine cargo insurance coverage minimizes your financial risk. Don’t leave your livelihood up to chance!
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Ocean Carriers $500 per shipping unit (a shipping unit may be defined as one ocean container)
Air Carriers $9.07 per pound
Truckers $0.50 per pound
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Are you familiar with GENERAL AVERAGE?
There are a number of notable cases of damage or loss to a vessel, with many resulting in General Average! More recent examples include:
- Ever Forward, March 2022
- Ever Given, April 2021, stuck in the Suez Canal
- Yantian Express, January 2019
- APL Vancouver, January 2019
- ER Kobe, February 2019
- Sincerity Ace – January 2019
- Maersk Honam – March 2018
- Maersk Kensington – March 2018
- Hyundai Auto Banner – May 2018
- MOL Prestige – February 2018
- Caribbean Fantasy – June 2018
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Problems Facing the Industry
- Stricter rules on Dangerous Goods cargo will lead to higher costs and more incentive on the part of shippers to avoid proper declarations.
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- National Cargo Bureau in NY found in 2017 that of 1,721 stowage plans inspected, 20% showed errors with DG.
General Average will (probably) never go away, so, keep yourself informed:
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MAKE SURE YOU ARE COVERED! Ask the questions. Do not assume.
