More Cargo to Cause Rerun of Local Port Logjams

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The vessel and truck congestion that clogged local ports last year, delaying import flows during the peak shipping season, will likely be repeated, according to a study being released this week.


The Los Angeles County Economic Development Corp. projects that container traffic at the ports of Los Angeles and Long Beach will increase by at least 10 percent this year over last year’s record levels.


Some of the factors that kept ports backed up from last June through the end of the year have been addressed, but the LAEDC report, scheduled to be released at the start of the annual World Trade Week on Wednesday, finds the measures taken aren’t enough.


“Whether the international trade industry recognizes it or not, it’s no longer wearing the white hat, it’s wearing the black hat,” said Jack Kyser, senior economist for the LAEDC. “They are being fingered for both congestion and causing environmental problems. These are very emotional issues and it’s going to be very difficult to solve them.”


Measures meant to mitigate some of the truck tie-ups that occurred last year have been slow to develop.


The PierPass program, which provides financial incentives for retailers to move cargo at night and during the weekend, won’t get started until June 30; it was originally scheduled to start in November.


Maritime officials hope but do not predict that as much as 50 percent of the ports’ cargo will be moved by night. However, it will be difficult for smaller importers to shift staff at warehouse and distribution centers to nighttime hours.


“You need a second shift to receive goods off hours (or) on the weekends,” said Charlie Woo, chief executive of L.A.-based Megatoys and chairman of the World Trade Week committee of the Los Angeles Area Chamber of Commerce. “Particularly with small businesses, it could be a problem adjusting.”


Some importers shifted orders earlier this year, as they did last year, in an effort to avoid the crunch. Kyser also expects more vessels to be diverted to less-congested West Coast ports this year than last, but not enough to alleviate serious disruptions.


“(Congestion) is a major concern,” said Woo.


At the ports, several improvements have been implemented since that year’s crunch, most notably the addition of 3,000 longshoremen, with as many as 2,000 more expected to be hired this year. In addition, optical scanning systems have been installed that allow terminals to locate cargo within their yards and move it out more efficiently.


L.A. port spokesman Arley Baker, who has not seen a copy of Kyser’s report, expects that container traffic will flow more freely than it did last year due to the PierPass program and the availability of more longshoremen.


Port staff workers are also pushing L.A. harbor commissioners to reduce free storage time for containers on the docks.


“The goal is to get ships in here and unload them without delay or backup and from there, move the cargo off the docks as quickly as possible,” said Baker.


Traffic overloads on the railroads serving the ports were another big factor in last year’s delays. While those have been alleviated, railroads serving L.A.-area ports are operating close to capacity already.


Kyser said he anticipates more diversions during the peak season, but he added the change in plans will not impact the anticipated crunch.


“We know there were diversions in 2004 and there are going to be more in 2005,” he said. “But is that going to solve the congestion issues? No.”

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