Tag Archive for: west coast ports

5 Year Agreement Ratified by ILWU: Are West Coast Ports In The Clear?

On Friday, May 22, 2015, the International Longshore and Warehouse Union (the union that represents dockworkers) “voted overwhelmingly to approve a new contract.” According to joc(dot)com, “82 percent of the rank-and-file votes were cast in favor of the contract.”

An article in the Seattle Times brought up the issue of ‘confidence’ now that the official dispute is over.

When will confidence and trust be restored?

Will some shippers still divert shipments to the East Coast or to expanded canals such as in Panama? Will other ports vying for United States business successfully gain new business? Or, will the status quo resume?

Read more the details of this breaking news here:

http://bit.ly/1PKCEuz

http://bit.ly/1dv8KcO

 

 

 

 

Will Cargo Be Permanently Diverted Away From West Coast Ports?

This is a question on many of our minds.

The fact is that despite many companies who state that they have retained their shipments through West Coast Ports, East Coast ports have seen a 12% increase in April and Gulf Ports have seen a 20% increase in the same month. West Coast Portals have dropped by 4 percent*.

Many claim that it is the lack of guarantee and the doubt that another disruption can be prevented without serious changes in how cargo is processed that may be prompting the reallocation of cargo. According to an article on joc(dot)com, “Pacific Maritime Association President James McKenna, [who] told JOC.com that the current system is ‘not sustainable.'” Much uncertainty persists among shippers who depend on cargo reaching their destinations on time, without disruption.

Joc(dot)com, an excellent industry resource, recently released the results of a survey. The results were:

“Just over 65% of the shippers who responded to JOC’s survey reported that they plan to divert cargo from West Coast ports in 2015 and 2016.” Only 33.8% said that they would ship less cargo through West Coast Ports.

If CEOs of companies that depend on West Coast ports continue to perceive the ports as ‘unreliable,’ what will the long term effects be given the relatively congestion-free environment in Southeast Ports, for example? Ultimately, what will the impact be on East and Southern Ports?

 

*source: joc.com

West Coast Ports Update: When Will Ports Be “Back To Normal”?

When ports slowed down to historically low levels last November, few of us imagined it would take nearly seven months to begin to get back to “Normal.” According to an article on joc(dot)com, however, “the ports and port users are confident that ‘normal’ will happen by the end of May.”

However getting back to the old ‘normal’ may not be enough, especially because the West Coast expects large ships to continue to come into ports. In fact, the Tiago Group states that West Coast terminals are not adequately quipped. They estimate that 100 more cranes would be needed to handle demands. Additionally, “the physical layout and operational methods at the terminals simply won’t stand up to the stress.”

With a peak season that will hit ports with an estimated 20% increase in container volume three months from now, the shipping community remains very concerned. Combining increased volume with the extra demands large ships place on terminals, will there be another slowdown?

While ports are innovating solutions to address inefficiencies (read the full article – link below), the community sees the larger picture: that the old methods of handling cargo containers that were relevant to smaller ships is no longer sustainable. The future shows more and more large ships coming into ports. As such, many argue that a new ‘normal’ must be created to resolve this issue.

Are 24/7 ports the solution? How does technology play a role? What methods and processes need to change to create a more effective system in the future?

We highly recommend reading the original article, which goes into great detail on this subject: http://bit.ly/1EEbr1f

Is Cargo Moving Any Faster Now In West Coast Ports?

Is the backlog really shrinking?

Despite reports that claim productivity has increased, there are still major backups, especially at the Port of Oakland.

According to an article on joc.com, “Importers and exporters are hearing from their motor carriers that the backlog is growing, but the port declares it is shrinking.”

In fact, ships are moving in and out of ports faster. However, the amount of time it is taking for the trucks themselves to enter and exit terminals is “dismal.” In reality, there are longer trucking queues.

How long will it take to get productivity back on track? How will the ports keep up with demand?

Orig article source: http://www.joc.com/port-news/port-productivity/cargo-moving-not-so-fast_20150323.html

Is the Port of New York – New Jersey Bound For Long Term Traffic Growth?

According to an Editor’s Note from source Joc(dot)com, congested marine terminals out west may be linked to a 7.8% jump (year over year) for the month of January 2015. This was a record month for container traffic at the Port of New York – New Jersey. The East Cost plus Gulf Ports have experienced an increase in five percent volume in 2014 over the prior year, while West Coast ports grew by as little as one percent.

Are shipping diversions going to continue long term?

New Survey Results: Joc.Com States That 65 Percent Of Shippers Plan To Divert From West Coast Ports

138 shippers were surveyed by joc.om. The results: “they plan to ship less cargo through U.S. West Coast ports.” Many say they plan to divert shipments away from West Coast Ports following congestion issues and shutdowns. With long delays impacting business supply chains, many shippers say that they have no choice but to find alternative routes. The risks are too high. Some shippers in the agricultural sector do not have a choice though and they will need to continue to use the ports.

Who will benefit from this?

“U.S. East Coast ports are poised to be the biggest beneficiaries of the surveyed shippers’ frustration with West Coast congestion, as 38.8 percent of those planning to reroute cargo say they will send the freight to the opposing coast. “

How will local production be impacted?

According to the article on joc.com (link is below) port congestion may prompt more shippers to source products “closer to the United States or within the country itself, as they face a “cycle” of potential disruptions.”

 

Full Article: http://www.joc.com/maritime-news/trade-lanes/65-percent-shippers-surveyed-say-they%E2%80%99ll-divert-west-coast_20150225.html?mgs1=ec23jlfyfc