The Port of Los Angeles’ sales pitch to importers in recent months has been: We have plenty of capacity now. No more ship queues. The port labor contract expired July 1, 2022, but there has been no major disruption to imports during negotiations on the new contract. No need to ship your goods all the way through the Panama Canal to the East or Gulf coasts. Come back to LA!
That sales pitch, to the extent it ever worked, died on Friday. …
One [exporter of agricultural goods] had 10 trucks turned away from the Port of Long Beach on Thursday night, with containers of goods having to be stored at a yard near the port. This exporter incurred an added cost of $20,000, leading to a substantial loss on the international sale.
ButtEdge’s fault.
I remember back in the 80s GM having a terrible time keeping their Norwood, Oh plant operating because the UAW workers refused to show up in numbers enough to keep the line operating. I think their bosses in the retail mall that replaced the plant aren’t as forgiving.
I think it is inevitable that Ca ports close. Or, are massively scaled down.
With Ca essentially banning 50%+ of the trucks needed to move goods.
It is imperative for shippers to move the destination to a hub that can move as much as they can land ASAP.
Now add in Union/ worker/ Staffing/ reliability issues?