Labor talks, bigger ships the talk of Port of Long Beach forecast event

LONG BEACH >> Upcoming labor talks, the arrival of bigger ships and shortening trucks' waiting times dominated the discussion at Wednesday's 10th annual Pulse of the Ports at the Long Beach Convention Center.

More than 600 people attended the event, which forecasts the upcoming peak season of August through October for the ports of Long Beach and Los Angeles.

The morning included speeches and a question-and-answer session from panelists Rich Dines, vice president of the Long Beach Board of Harbor Commissioners; Dr. Walter H. Kemmsies, chief economist for Moffatt & Nichol; Bruce Carlton, president and CEO of National Industrial Transportation League; Mario Cordero, chairman of the Federal Maritime Commission; John Kaiser, vice president and general manager of Intermodal of Union Pacific, and Alex Cherin, executive director at Harbor Trucking Association.

Carlton said shippers are on edge about "the elephant in the room" - the upcoming contract talks in May with the Pacific Maritime Association, which represents employers on the West Coast waterfront, and the International Longshore and Warehouse Union. The contract, which expires June 30, affects 23,000 dockworkers employed at ports in California, Oregon and Washington.

Past talks have been contentious and have resulted in delayed cargo movement.

"They're watching, they're nervous," he said, adding that some shippers are making contingency plans "in case things don't go well."

He added that shippers hope both sides ink a long-term contract.

Panelists also spoke about the influx of bigger vessels to the ports holding more cargo as shippers work to save on operation costs. Kaiser said Union Pacific is well-positioned to handle the growth from bigger vessels. He touted Union Pacific's longterm $1-billion investment to enhance its rail line with traffic signals, double tracks and other improvements as well as its new $400-million rail facility in El Paso, Tx., that ran its first train this week.

The issue of how long it takes for a truck to arrive at a terminal and leave with a container is the single biggest competitive issue today and needs to be addressed, said Cherin, whose association's 100 members represent 60 percent of the drayage fleet in Southern California.

He added that incentive programs for terminal and truck operators should be considered to encourage shorter wait times, but before that happens an acceptable turn time needs to be determined.

"If we do not do something concrete about fixing or minimizing visit times at these gates ... we will lose cargo to other ports," Cherin said.

Contact Karen Robes Meeks at 562-714-2088.

Source: Times Herald