WEEK 28 MARKET UPDATE

CALIFORNIA AWARDS $1.5 BILLION FOR PORT INFRASTRUCTURE UPGRADES

California Governor Gavin Newsom announced an investment of over $1.5 billion for building a more efficient, sustainable, and resilient supply chain, including $450 million for zero-emission infrastructure, locomotives, vessels, and vehicles. “No other state has a supply chain as critical to the national and global economy as California,” said Governor Newsom. “These investments –
unprecedented in scope and scale – will modernize our ports, reduce pollution, eliminate bottlenecks and create a more dynamic distribution network.” California will fund 15 projects with $1.2 billion to create 20,000 jobs, increase capacity for moving goods, and reduce environmental impacts. $350 million will also be awarded to 13 projects to eliminate street-level rail crossings for safety improvements, emissions reduction, and improved transportation. The Port of Los Angeles has been granted $233 million to complete infrastructure projects that will create a more efficient and sustainable supply chain. The grant funding will support projects including the expansion of the Maritime Support Facility, construction of a pedestrian bridge over freight tracks, and improvements to the Navy Way and Seaside Avenue intersection. The total project cost is $318.08 million, with $84.99 million in matching funds from the Port of Los Angeles, LA Metro, and other sources.

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WESTERN CANADA DOCKWORKER STRIKE DISRUPTING BILLIONS IN TRADE: EMPLOYERS

An estimated C$800 million of cargo is being disrupted daily by the longshore strike hitting the Western Canadian ports of Vancouver and Prince Rupert, representing 25% of the country’s total traded goods each day and with the strike by the International Longshore and Warehouse Union (ILWU) Canada now in its 11th day, some C$7.5 billion in Canadian imports and exports has been compromised.

VOLUME BOOST, CONSTRUCTION SNARLS JACKSONVILLE’S BLOUNT ISLAND DRAYAGE TRAFFIC

Truck drivers calling Jacksonville’s Blount Island marine terminal have been battling multi hour delays in recent weeks as they contend with a one-two punch of significantly higher container volumes and a construction project that has helped snarl traffic at the facility. Southern Companies, a Florida-based drayage provider, recently issued a notice about “major delays and congestion” at Blount Island, saying cargo owners should “be prepared to extend containers’ last free day,” which is indicative of an ongoing, persistent issue. The problems flared in recent weeks after Ocean Network Express (ONE) shifted a vessel service out of Jacksonville’s other primary container terminal.

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BUNKER FUEL CONTAMINATION UNCOVERED IN HOUSTON, TEXAS

Marine fuel testing company Veritas Petroleum Services (VPS) says it has uncovered a case of marine fuel contamination in Houston, Texas. The company says the contaminated fuel was delivered by a single supplier between March and May of this year. Issues with the fuel was not detected until after it was burned several weeks after bunkering. Eleven vessels
using the fuel have reported loss of power and subsequent loss of propulsion, VPS said. VPS’ analysis of the contaminated fuel detected high levels of Dicyclopentadiene (DCPD) and associated isomers in the VLSFO bunker fuel. The DCPD compounds detected ranged from 3,000 to 7,000 ppm, causing damage to the fuel injection system and excessive sludge formation over time.

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