Cargo up at LA, Lengthy Seashore ports; labor secretary in San Francisco for negotiations – Day by day Breeze

The good news: Freight numbers are increasing in Los Angeles and Long Beach, for example.

The bad news, however, is that attention remains on the 13-month stalled longshore contract negotiations, which have disrupted some cargo flows and continue to pose a threat to business in the ports of Los Angeles and Long Beach.

However, there could be grounds for renewed, albeit cautious, optimism thanks to an apparent slowdown.

POLA Chief Executive Gene Seroka addressed the current state of the port on Tuesday, June 13, as he presented May’s cargo figures and discussed how ongoing labor talks are affecting operations.

The Journal of Commerce, meanwhile, reported Tuesday that the International Longshore and Warehouse Union and maritime employers agreed to a cooldown late Monday at a joint meeting with Julie Su, the Biden administration’s nominee for Secretary of Labor.

The JOC, a trade publication covering the ports, said both sides will try to use the apparent truce to reach an agreement on wages, which had been a sensitive issue.

The apparent ceasefire came after a months-long stalemate that raised concern in the 29 affected West Coast ports and drew Su this week to San Francisco where talks are being held.

Su arrived on Monday, Seroka said at his monthly virtual press conference, and has stayed there since Tuesday.

The two sides reportedly remain far apart on the issue of a wage increase, Seroka said.

“The last few weeks have been challenging and at times confusing,” Seroka said of the discord between the ILWU and the Pacific Maritime Association. “There were claims and counterclaims.”

The PMA, which represents employers, said the union continues to cause work disruption, although ILWU officials have denied it.

“From my point of view,” Seroka said, “this is what impasse and negotiation looks like.”

However, he also said the port has had “only a handful of bad days”.

These negotiations, which began on May 10, 2022, have lasted longer than any Seroka can remember.

“We’re at about 70% capacity,” he said of the port terminals, adding that some cargo is still being shifted to the Gulf and East Coasts by customers who say they are “very concerned about any kind of disruption.” to the lengthy negotiations.

Nonetheless, according to Seroka, the port was “largely able to operate almost normally”.

Su, Seroka said, “is working with both sides to ensure negotiations stay on track.”

The goal, Seroka said, is to “move the parties forward as they continue to negotiate.”

If a labor deal can be “finalized” soon, “we are prepared for a strong second half for the rest of the year,” he said.

POLA, Seroka said, saw an increase in cargo volume in May, for the third straight month, suggesting that deliveries in the fall season — usually referred to as the port’s “busy” season — are starting to pour in. Seroka also noted that 58 ships are currently en route from Asia to the twin ports, up from early 2023.

While May freight numbers were still about 19% down from a year earlier in the same month, the recent upward trend bodes well for the rest of the year, Seroka said.

In May, the port handled 779,140 20-foot units (or TEUs, the industry standard cargo measure). That’s a 60% increase in cargo since February, Seroka said.

In the first five months of 2023, the port handled 3.3 million TEU, down 27% compared to the same period last year.

“Even if volume improves,” Seroka said, “our terminals are still a long way from operating at full capacity.”

The port of Long Beach, meanwhile, had its strongest month of 2023 in May, raising hopes for a trend that will continue into the second half of the year.

“Mid-way through the year, we are seeing early signs that cargo volumes are on the up, with our busiest month since August of last year,” said Mario Cordero, CEO of the Port of Long Beach. “We look forward to further positive signals in the coming months.”

The Port of Long Beach moved 758,225 TEUs last month, down 14.9% from May 2022 – but up 15.6% from a month ago. In April, too, it was 8.6% more than in March.

Port of LA’s Seroka said the prospects are encouraging.

“We’re seeing more ships heading to Los Angeles across the Pacific,” Seroka said, “an encouraging sign for the second half of the year.”

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