The Long Beach port, renowned for its pivotal role in facilitating global trade and serving as a gateway for international commerce, is facing significant labor disruptions, resulting in the temporary closure of operations for the TTI Terminal today, Monday, June 5th, 2023.
The current labor disruptions have arisen from negotiations between the port management and labor unions representing the diverse workforce that fuels the port’s operations. These disruptions stem from an unofficial dispute between ports and workers regarding wages, safety, automation, and pension benefits. While both parties have been engaged in constructive discussions, the impasse has unfortunately led to an unsustainable work environment.
Efforts are underway to address the issues at hand, and negotiations are ongoing to find a resolution that is fair and mutually beneficial for all parties involved. The aim is to swiftly reach an agreement that will enable the resumption of port operations and minimize disruptions to global supply chains.
Mario Cordero, the executive director of the Port of Long Beach, expressed confidence in the commitment of all parties involved to find a resolution, allowing cargo to continue moving through the terminals. However, Matt Schrap, CEO of the Harbor Trucking Association, highlighted that receiving such a notice on a Sunday is unusual and may exacerbate congestion issues.
Recent days have witnessed a lack of longshoremen reporting to work at the Port of Oakland since Thursday, while at the ports of Los Angeles and Long Beach, no daily workers reported for duty on Sunday. This intermittent labor presence and resulting congestion have detrimental effects on the movement of containers, as extra labor costs, detention penalties, and delays accumulate, ultimately impacting shippers, truckers, and consumers.
Allegations have surfaced regarding the International Longshore and Warehouse Union (ILWU) members “red tagging” equipment for safety checks, taking it out of service.
The disruptions at Long Beach port has far-reaching implications, as even a minor disruption at one terminal can cause significant setbacks and disrupt subsequent shifts. Closure of an entire complex further complicates operations, requiring days to recover as new appointments are made, schedules are adjusted, and receiving schedules are modified.
All parties involved are closely monitoring the situation, with hopes for a swift resolution that will restore the flow of commerce. Updates regarding the status of the Long Beach port operations will be provided as new information becomes available.
Please contact your Western Overseas representative with any questions.
