Update: 08.06.2023

The situation at Los Angeles and Long Beach ports has gradually improved since 2 June, when labour action caused the shutdown of several key terminals on the US West Coast.

Truck gate movement - which came to a complete halt at Long Beach’s largest terminal, TTI, on Monday, 5 June – has now improved. Nevertheless, the arrival and departure of container vessels remain slightly affected. Christoph Cluever, Kuehne+Nagel’s Vice President Seafreight, West Area USA, highlighted that “vessel departures and arrivals are impacted by a lack of scheduled ILWU labour.”

According to seaexplorer data, eight vessels were anchored outside Los Angeles/Long Beach ports this morning, 8 June. Nevertheless, the seven-day average vessel waiting time remained relatively stable throughout the disruption period.

At the Port of Seattle, low productivity levels led to the shutdown of the port. According to a report by the Journal of Commerce (JOC), "the Port of Seattle was effectively shut Wednesday and dockworkers were sent home because crane productivity was about 30% of normal." In addition, a source informed the JOC that productivity at Tacoma Port was about 50% of normal.

Rail shipments to LA briefly suspended

Local news published on Tuesday, 6 June, claimed that Union Pacific railroad suspended the transport of export and empty containers destined for the Port of Los Angeles. However, a Union Pacific spokesperson told Lloyd’s List that the suspension was temporary and has been lifted as of Wednesday morning.

US retailers and manufacturers call for high-level intervention

While the ILWU confirmed that it remains committed to resuming negotiations with the Pacific Maritime Association, key stakeholders are urging for political intervention. Both the National Retail Federation and the National Association of Manufacturers have sent letters to US President Biden asking him for action to resolve the situation.

Update: 07.06.2023

After several days of disruption on the US West Coast, the latest news reveals that container terminals are running as normal. The Port of Los Angeles announced in a tweet published yesterday that “All Port of Los Angeles container terminals are currently open and operating.”

Similarly, Mario Cordero, Executive Director of the Port of Long Beach, said in a tweet published on 7 June, “The Port of Long Beach is operational and open for business. The waterfront workforce and terminals continue to move cargo and energize the U.S. economy.”

According to a report by CNBC, labour talks between the ILWU and the Pacific Maritime Association (PMA) will go on as scheduled this week. The report added, however, that Union Pacific, a Class I railroad, “is no longer accepting exports or empty containers at its Denver rail terminal destined for the Port of Los Angeles.”

While the reason behind the decision remains unknown, shippers are concerned this could be a “ripple effect” of the labour action at the ports. In the meantime, the National Retail Federation (NRF) has sent a letter to the US Administration urging US President Biden to push for a resolution on the West Coast.

Update: 06.06.2023

Kuehne + Nagel sources confirmed that disruption at select terminals on the US West Coast continued to exist yesterday. However, disruption was isolated to truck gate operations. A CNBC report highlighted that truckers were turned away by operators of Fenix terminal, Los Angeles, during the hours of the morning shift.

In addition, a press release issued yesterday by the Pacific Maritime Association (PMA) confirmed that disruption remained at select terminals. "Over the weekend and continuing today [5 June], the ILWU has continued to stage concerted and disruptive work actions that have slowed operations at key marine terminals at the Ports of Los Angeles and Long Beach and elsewhere on the West Coast," announced the PMA.

The terminals reportedly affected by the labour action were:

• TTI - Total Terminals at the Port of Long Beach
• PCT – Pacific Container Terminal at the Port of Long Beach, and
• Fenix Terminal at the Port of Los Angeles

Terminals at the ports of Oakland and Seattle are operational again, added the Kuehne+Nagel source. In an update statement issued by the Port of Los Angeles late yesterday, the port announced, “All Port of Los Angeles container terminals are open and operating today with appropriate staffing.”

Seaexplorer data concerning anchored vessels and blocked capacity at Los Angeles and Long Beach ports show that an average of 5 vessels were outside the port complex since the beginning of the disruption on 2 June. 

Update: 05.06.2023

After the news on Friday, 2 June, about the shutdown of several key terminals in West Coast ports, local news reported that disrupted operations remained throughout the weekend.

Total Terminals International, the largest terminal operator at the Port of Long Beach, announced cancelling trucking orders for both imports and exports for Monday, 5 June, in a statement published on their website.

In addition, CNBC said on Sunday, 4 June, that “no longshoremen have reported to work at the Port of Oakland since Thursday.” CNBC cited Robert Bernardo, director of communications for the Port of Oakland as saying, “We continue to monitor the situation closely and we hope this is resolved soon, so that the flow of commerce can continue.”

The labour union ILWU highlighted in a press release on 2 June that it remains “committed to bargaining a fair and equitable contract.” It added that reports about negotiations breaking down “are false” but stressed that the union will not “settle for an economic package that doesn’t recognize the heroic efforts and personal sacrifices of the ILWU workforce that lifted the shipping industry to record profits.”

Original article: 03.06.2023

A press release issued by the Pacific Maritime Association (PMA) announced that a number of terminals on the US West Coast were closed on 2 June as the labour union ILWU staged "concerted and disruptive work actions that have effectively shut down operations at the Ports of Los Angeles and Long Beach."

In addition, the PMA noted that the ILWU is carrying out similar labour actions that have "shut down or severely impacted terminal operations at the Ports of Oakland, Tacoma, Seattle, and Hueneme."

Local news attributed the shutdown to failure in negotiations over wages. According to a report by CNBC, the operational stoppage is expected to spread to other West Coast ports.