ASIA USA Trade Lane and ILWU West Coast Port Update

The situation in LA is extremely tough. The piers are running very slow. Another issue adding to the mix is the chassis situation.  Because the carriers halted the Chassis management, the chassis pools have now expanded outside carrier management. They are not getting maintained properly causing further chassis shortages and delays as truckers make sure chassis are in drivable condition.

The ILWU (Longshoreman in West Coast) and PMA (Pacific Maritime Association / Management) are in negotiations and ILWU working without a contract right now. They have vowed to work together without interruption but things are going slower than usual right now. Instead of three pulls a day, truckers are averaging one, “maybe a second” at night. On Thursday last, the Longshoreman quit at 3 pm and did not work the night shift because they had to hold meetings to discuss things.

The Teamster truckers are “not striking so far this week”. Although they have pulled wildcat work actions with the three largest trucking companies in LA basically on and off through last week. This adds to delays to the largest operations and put huge pressure on all truckers, port facilities and causing further rail operation delays. Although this does not affect WWL truckers directly, it overflows to affect every port and every container pulled from the port. ALL truckers are at least” 48 hours behind” right now. That means that we need 48 HOUR notice to pre-pull the containers. Basically, Very difficult to get containers the same or next day. PLEASE GIVE US 48 HOUR NOTICE TO PULL CONTAINERS.

The vessels are overbooked to both West Coast and East Coast right now. Many shippers are now circumventing the West Coast Ports because of the Local Port issues in LA and are now move to the East Coast. Transit ports have hundreds of containers stack up from late feeders due to bad weather, late feeders, and due to what is becoming a very busy peak period. Combine the situation in LA, and you have a “perfect storm” brewing right now. With a further PSS brewing Aug 1 subsequent to July 1 PSS and the vessels overbooked, WWL has been moving our shipments with very few incidents of roll-overs. Although we are facing cost increases WWL‘s effort to mitigate these increases is ongoing and we will advise you further of the rate situation in the near future.

 

Thanks for your understanding.