Vessel Cargo and Rail Update

Vessel Cargo and Rail Update

Ports of Los Angeles and Long Beach

According to Gene Seroka, Port of Los Angeles Executive Director, “The ports have reduced the number of anchored ships by some 90% since a record 100 ships awaited entry into the ports of Los Angeles and Long Beach earlier in the year. There are currently nine container ships waiting in anchorage, which is down from 100 in January.” Seroka further stated, “Imports will begin easing, China factory orders are slowing, and some retailers continue to have elevated inventories.” Specifically, he indicated, the tapering of some import commodities which will not be purchased yearly include appliances, fixtures, furniture, and sporting equipment and goods.” He believes the August port statistics may not realize growth; however, believes the Port of Los Angeles will have a strong back half of the year.

National Cargo Rail Diverted Labor Strike

On July 7, 2022, President Biden stopped a rail labor strike and named a Presidential Emergency Board. The three-member board was charged with making non-binding recommendations to resolve the over two-and-a-half-old dispute between most major railroads and their 12 labor unions. On August 16, 2022, the board issued its report with their non-binding recommendations regarding wages, benefits, and work rules. Both sides will have 30 days from the release of the recommendations to reach a voluntary settlement based on the board’s recommendations. The recommendations resulted in a 124-page document.

International Longshore and Warehouse Union and Pacific Maritime Association Contract

The contract between the ILWU and PMA expired on July 1, 2022, and both continue to work to renegotiate a new contract. Vessels continue to be worked without labor slowdowns on the West Coast Ports.

Please contact your Western Overseas representative with any questions.