Port of L.A. sees busiest February in its history
The specter of another coronavirus lockdown in China and the ongoing scramble to loosen up the supply chain with new federal and state efforts were among topics Port of Los Angeles Executive Director Gene Seroka discussed in a wide-ranging virtual news conference on Wednesday.
Seroka also announced another record-breaking month at the port. The nation's busiest port processed 857,764 container units last month — a 7.3% increase over February 2021, making it the busiest February in the port's 115-year history.
The port also set a cargo record in January.
“Overall,” Seroka said, “we're off to a very good start this year.”
The Port of Long Beach, which released its latest numbers on Friday, also reported its busiest February on record.
Dockworkers and terminal operators at the Long Beach port, the nation's second busiest, moved 796,560 twenty-foot-equivalent units in February, up 3.2% from the same month last year.
The strong cargo flow is expected to continue through spring, Seroka said, as retailers continue replenishing their shelves after the winter holidays.
The pandemic, however, continues hovering on the horizon, at least internationally — with China seeing a resurgence in the omicron variant.
Of particular concern is the lockdown of Shenzhen, a manufacturing hub in southeastern China that could create delays in parts and technology products.
Container loading is “decreasing massively” at Shenzhen's Yantian port, the world's fourth largest container terminal, according to a Wednesday report by Reuters.
About a third of the cargo coming to the L.A./ Long Beach port complex comes from that southern region in China, Seroka said, adding that the situation is being watched.
“There's something that happens in the supply chain every day,” Seroka said, “so we've got to be resilient.”
The impact, he said, “really depends on how severe this wave is. There are a few unknowns here and it is still a developing story, so we'll continue to watch this.”
The impacts of factories being shut down now in China, he said, would not be felt for several weeks.
“You can't jump at shadows, you can't run around with your hair on fire,” Seroka said, while adding that officials would watch the data closely.
“We're on the phone each night talking with colleagues and friends we've known for decades,” Seroka said, in an effort to see the “mini trends” that are emerging.
Appearing with Seroka this month was Dee Dee Myers, California Go-Biz director, who talked about the state's focus on ports and the supply chain.
State efforts include spending $2.3 billion from the 2022-23 California budget for port infrastructure and to accelerate the transition to zero emissions; $870 million has already been “penciled in” for the zero-emissions transition, Myers said.
While only the start of what it will cost for a full transition, Myers said, the $870 million is being eyed as a way to make zeroemission products more commercially available and affordable.
“The top need is infrastructure,” she said.
Seroka, meanwhile, was also among those on hand at the White House on Tuesday when a new nationwide cargo sharing initiative — the Freight Logistics Optimization Works, or FLOW — was unveiled.
The goal is to “speed up delivery times and reduce consumer costs,” according to a news release from the Biden administration.
Port of Long Beach Executive Director Mario Cordero also was present during the announcement.
The effort, he said, will help to develop “common data standards to facilitate freight movement.”
The Long Beach port, meanwhile, is also pushing forward with developing its Supply Chain Information Highway data platform, Cordero said.
Congestion is currently not an issue on port terminals, Seroka said, as older cargo and empties continue to be moved out.
Vessels heading for the twin ports from Asia on Wednesday numbered 44, he said. The number in more normal times, Seroka added, would be about 30.
On the national level, FLOW will be designed to make broader connections in posting real-time data for cargo movements.
“This will be a nationwide look at supply chain sharing that we've been campaigning for for years,” Seroka said.
FLOW, Seroka said, will build on what the local ports have been doing for the past six years in sharing data.
“This combines the elements of the supply chain across the spectrum, all the way to the store shelf,” he said. “It's about sharing more information so we can have a better look at what's coming at us and be prepared.”
Initial partners are the ports of Los Angeles and Long Beach, and the Georgia Ports Authority.
Other participants are Fenix Marine Terminal, Global Container Terminals, Albertsons, Gemini Shippers, Land O' Lakes, Target, True Value, FedEx, Prologis, UPS and CH Robinsons.
On another topic, Seroka said talks for a new contract are set to begin in May between the Pacific Maritime Association and the International Longshore and Warehouse Union.
“Both sides realize what's at stake economically for the vitality of our country,” Seroka said, “as we try to move out of COVID, the markets going up and down, Ukraine, and all the uncertainty and uneasiness of these times.”
“Seasoned negotiators” on both sides will sit at the bargaining table, Seroka said.
“These longshore workers need to be paid what they're worth,” Seroka said. “They lost more than 40 (workers) to COVID” but continued working to unload record levels of cargo.