With the dispute at the U.S. West Coast ports ironed out and operations back at full speed, Los Angeles and Long Beach announced plans to further extend their cooperation to ensure faster cargo flows at the country’s top two ocean gateways and retain their global competitiveness following the months-long trade disruptions.
The two ports recently submitted to U.S. maritime regulator Federal Maritime Commission (FMC) an updated agreement that will enable them to work together on improving their supply chain logistics, as well as promoting their environment, security, and legislative advocacies.
“With a tentative labor contract announced late last week, the Ports of Los Angeles and Long Beach must collaborate and invest in the future to reach new levels of cargo efficiency and re-enforce our position as the Western Hemisphere’s trade gateway to the world,” said Los Angeles Mayor Garcetti in a joint statement with Long Beach Mayor Robert Garcia.
“Now that our ports are moving again we plan to redouble our efforts to invest in port infrastructure, increase trade and ensure that we remain the best place to do business on the West Coast,” said Garcia. “We are still the largest and most efficient port complex in the country.”
The two sea hubs are the largest in the nation, ranked first and second respectively, and combined are the ninth largest port complex in the world. They handle about 43 percent of the nation’s total import traffic and 27 percent of its total exports. More than 3 million direct, indirect, and induced jobs are related to cargo movement at the port complex. More than US$30 billion in national, state and local taxes are generated from port-related trade each year.
In recent months, the harbor commissions of both ports have requested from the FMC approval of an updated cooperative working agreement to work together on supply chain issues that include greater collaboration in the development of chassis supply and storage solutions, greater vessel call coordination, reduced truck turn-times, and solutions to help address congestion related to marine terminal operations.
“With an agreement in place, the ports of Long Beach and Los Angeles can focus on velocity, efficiency and environmental sustainability,” said Port of Long Beach Chief Executive Jon Slangerup. “Together, we will quickly re-establish our gateway as the most efficient route between Asia and North America.”
“The changing face of seaborne trade is impacting major ports around the world,” said Port of Los Angeles Executive Director Gene Seroka. “In order to keep our competitive edge, it makes good sense for our ports to strategize and help facilitate changes in the supply chain that will enhance Southern California’s competitive advantage.”
Back to full operations
Meanwhile, cargoes were finally moving at the West Coast ports as operations returned to normal on Monday with the clearing up of festering labor issues between employer Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU).
But experts say the reverberations of the work interruptions that started May last year will continue to be felt by both import and export sectors in the months ahead.
On Monday, the staff was in full force, the terminals were working, and the berths were full at the Port of Long Beach, where 27 container ships were waiting out in the harbor to get into berths, according to a report by USA Today.
The new contract between the PMA and ILWU is still up for ratification by members of both sides and is negotiated to last for five years.
Photo courtesy of Port of Long Beach
