PORT OF LOS ANGELES KEEPING A CLOSE EYE ON LABOR TALKS AS CARGO VOLUMES GAIN FOR A THIRD MONTH
Cargo volumes at the Port of Los Angeles increased for the third consecutive month in May but continue to track below pre pandemic numbers amid protracted West Coast labour negotiations and uncertainty in the economy. The nation’s busiest container port handled 779,140 TEUs last month, which represents a 60% surge in volumes compared to February’s low water mark and the highest monthly volume since last August. However, May’s volumes mark a 6% decline compared to both pre-pandemic levels in 2019 and the five-year rolling average for the month of May. In May 2023, loaded imports reached 409,150 TEUs, down 18% compared to May 2022, while loaded exports came in at 101,741 TEUs, marking a decline of 19% compared to last year. Empty containers landed at 268,249 TEUs, reflecting a 22% year-over-year decline. Year to date, the Port of Los Angeles has handled 3,304,344 TEUs through May, representing a 27% decline compared to the same period in 2022 and 15% below the five-year average.
U.S. CHAMBER OF COMMERCE CALLS FOR MEDIATOR IN WEST COAST PORT LABOR NEGOTIATIONS
The U.S. Chamber of Commerce is calling on President Biden to intervene in the ongoing labor negotiations between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) at West Coast ports. Negotiations between the ILWU and the PMA began in May 2022. After initial progress on healthcare and other benefits, progress slowed towards the end of the year. Tensions escalated in March 2023 when ILWU members at the ports of Los Angeles and Long Beach halted staggered lunch breaks. The Chamber of Commerce says this action effectively shut down the ports for an additional two hours each day, causing significant delays and backups.
PORT OF SEATTLE HALTS OPERATIONS AMIDST ILWU-PMA CLASH
Unions are seeking a pay increase that reflects workers’ contribution to the ocean shipping industry’s record profits from the pandemic cargo boom. They also want added compensation for the hours worked since their contract expired. West Coast ports stretching from California to Washington state are critical to the U.S. supply chains and the economy. More than 22,000 dockworkers at those trade gateways have been working without a contract since July.
LYNCH OUTLINES GROWTH PROSPECTS FOR PORT OF SAVANNAH
Georgia Ports Authority Executive Director Griff Lynch delivered an optimistic outlook for the Port of Savannah thanks to a convergence of domestic and international factors that are seen as likely to steer more cargo toward ’s the nation’s fastest-growing port. The Port of Savannah has benefitted from a growing percentage of inbound cargo shifting from the West Coast following congestion and now fear over labour disruptions. The GPA reports its share of the U.S. container market has grown from 7.8 percent in Fiscal Year 2014 to a record 11.4 percent in FY2023. Currently, Georgia Ports handle almost one out of every eight loaded TEUs in the United States. The surge in cargo headed to Savannah coincides with GPA’s ongoing expansion projects. With $1.9 billion invested in infrastructure initiatives, GPA is refurbishing three berths to accommodate large ships and adding 3.5 million twenty-foot equivalent units (TEUs) of new annual terminal capacity.
