Greg Dowd, CEO of the National Milk Producers Federation, speaks on “The Bottom Line” about the impact a port strike could have on various industries and the economy.
The CEO of the Port of Long Beach is confident Southern California will be able to handle the increase in cargo caused by the longshoremen's strike at East and Gulf ports.
Port of Long Beach CEO Mario Cordero said in an interview Monday before the contract expired that “we would expect an increase in cargo” in the event of an East Coast port strike. he told FOX Business.
LOS ANGELES, CA – OCTOBER 16: Aerial view of containers waiting to be loaded onto trains and trucks at the Port of Long Beach on October 16, 2021 in Long Beach, California. (Photo by Qian Weizhong/VCG, Getty Images) (Qian Weizhong/VCG via Getty Images/Getty Images)
“Shippers, in this particular case of East Coast negotiations, shippers have more peace of mind and certainty, so during these kinds of delicate contract negotiations, shippers are more likely to move their cargo to other gateways, in this particular case to the West Coast.” “History tells us that we will start to divert,” he said.
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Cordero said other ports along the West Coast and Canadian ports, including Halifax on the East Coast, could move cargo and reroute it.
“We're in a very good position to handle the increase in cargo that we receive,” he told FOX Business, referring to the amount of cargo that passed through the Port of Long Beach in August.
The port's workforce handled more than 913,800 TEUs in the month, an increase of nearly 34% from a year earlier despite the possibility of cargo diversions and increased tariffs, the port said at the time.
“This is a historic amount and our biggest month in our 113-year history,” Cordero told FOX Business. “The great news is that we were able to accomplish that without congestion or bottlenecks here at the Port of Long Beach, given what we experienced during the worst of the COVID-19 supply chain crisis. It's a sign of great progress.”
The Port of Long Beach was currently at about 70% capacity.
Cordero said the attacks on East Coast and Gulf Coast ports will not affect West Coast operations.
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“It's no exaggeration to say that we can handle any business that comes our way on the West Coast and we can deliver efficient throughput for any service that comes our way,” he said. “I think there are many lessons learned from the experience with COVID-19.”
LONG BEACH, Calif. – NOVEMBER 12: A Long Beach Fire Port patrol boat intercepts a container ship before a press conference by U.S. Sen. Alex Padilla at the Port of Long Beach on November 12, 2021 in Long Beach, California. pass nearby. Mr. Padilla emphasized the following points: (Tama Mario/Getty Images/Getty Images)
Long Beach's preparations include preparing a business recovery task force and working with partners.
“If the outage is prolonged, it will increase costs and impact the economy, because if there is any disruption to the supply chain, like we had with COVID-19,” Cordero told FOX. “There will always be additional costs,” he said. work. “This is a very sensitive time given the fact that our economy is doing very well and our inflation rate is on a very good trajectory…We as a nation are absolutely certain that there will be no forces that change direction. “The most important thing in terms of what this means for the country is to avoid any long-term business shutdowns.” ”
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The CEO of the Port of Long Beach said negotiations take place every six years between the longshoremen's union and the employer association.
Last year, the Pacific Maritime Association and the International Ports and Warehousing Federation signed a new six-year contract of their own without any business interruptions. The agreement, reached after lengthy discussions, applies to about 22,000 longshoremen employed at 29 ports on the West Coast, including Long Beach.
The Port of Long Beach transported more than 8 million TEUs of cargo over the course of last year.
