6/5/23 -- 6 pm MST – Today the saga continued as dockworkers (ILWU) and ocean carriers/terminal operators (represented by the PMA) continue to reportedly disagree on wage/benefits discussions. There are a number of news sources online that are disclosing various details about wage discussions. Officially, we Hard Deck Logistics do not have any direct confirmations or information on the exact wage discussions, nor details on if the discussions are actually broken down, so we are not commenting on this aspect specifically.
In terms of operational impact, as expected with news that broke over the weekend, the TTI Long Beach port was partly nonoperational today (first shift gate) both in terms of gate activity for imports/exports, but also due to being short on labor gangs for unloading/loading vessels. Additionally, Hard Deck Logistics is aware that the FMS terminal port also was not operational in Los Angeles both in terms of servicing truckers for container pickups during at least a good part of the first shift, but also from what we understand, in terms of reduced labor gangs working ships at berth. As Hard Deck Logistics reviewed gate cameras at FMS tonight, seems as though there is now some moving traffic on the second shift.
One of the largest ocean carriers in the world today in their daily customer advisory reported that about 75% of the required labor gangs have been available to work vessels in LA/LGB, but overall, they are working about 25% short. It has been reported that the port of Oakland had operational ports/terminals today, although slower than normal. The port of Seattle as reported by one of the top ocean carriers in the world today has been experiencing a more severe slowdown in operations and thus, labor at the ports were sent home. Delays are to be expected from a vessel queue standpoint in Seattle, but yard, gate, and rail operations apparently continued as normal.
Keep in mind, the news updates we receive from drayage providers/truckers as related to container appointments for pickups seem to sometimes be a bit different than what is “officially” reported at times. There is misinformation out there in the news.
Hard Deck Logistics observed that on-dock (and off-dock) rail lines at multiple LA/LGB terminals appeared to be moving containers fluidly, although it is quite possible that we see some impact on rail queues in the coming days.
Additionally, with “blanked” (or canceled sailings) at origins already causing issues with shippers’ supply chain planning, it is feared that this west coast delay may cause additional schedule alterations (for example at Asia origins). Also, it is quite possible that the additional potential sailing capacity cuts may result in the possibility of higher freight rates at a time when normally the traditional “peak season” for shipping starts to build.
Let us hope that the ILWU & PMA can soon come to a contract agreement so that this kind of disruption can be behind us.
Sincerely,
CEO Hard Deck Logistics
www.harddecklogistics.com
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