SoCal Ports See Strong Box Numbers in May

The Southern California ports of Long Beach and Los Angeles reported exceptionally strong container traffic growth in May, marking nearly six straight months of positive growth.

The Port of Long Beach handled a total of 524,715 TEUs during the month of May, a 25.1 percent increase over May 2009. Total loaded inbound boxes moved during May were up 26.8 percent to 264,505 TEUs, and total loaded outbound boxes climbed 14.5 percent to 138,659 TEUs, both compared to May 2009.

Across the bay, Los Angeles port officials reported that total container traffic for the month of May saw 689,429 TEUs move across their docks and wharves, a 19.9 percent increase over the year-ago period. Total loaded inbound traffic also rose 12.5 percent for the month to 342,171 TEUs. The port also saw total loaded outbound container traffic increase 5.3 percenthandled 160,621 TEUs

SoCal Ports Pick Up Three New Services

The two Southern California ports, after suffering through 2009, have seen trade numbers increase in the first part of this year. Also increasing are the number of new services being announced.

Asian ocean carriers Evergreen Line and China Shipping Container Lines have teamed up to start a Los Angeles/Oakland to China service to be called the China/South US West Coast Service 2, or CPS2.

The service will utilize five 4,000-TEU vessels on a 35-day rotation that runs Oakland, Los Angeles, Qingdao, Shanghai, Ningbo and Oakland. The maiden call of the service to Oakland is expected to be June 13.

The New World Alliance – composed of members APL, Hyundai, and MOL – are also launching a new weekly transpac service stringing together the ports of Los Angeles and Oakland with Japanese and Chinese ports. To be called the Pacific Southwest 5, the new service will utilize five 4,700-TEU vessels on a rotation that will call at Shanghai, Busan, LA, Oakland, Yokohama, back to Busan, and Shanghai. Los Angeles is expected to see its first vessel of the new service on June 7.

Across the harbor, the Port of Long Beach's California United Terminal is expected to see the arrival of a new Hyundai service from north and south Asia this weekend. The new Pacific Southwest service plans to utilize five 4,000-TEU vessels. The service rotation will be Kaohsiung, Xiamen, Hong Kong, Yantian, Busan, Long Beach, Oakland, Busan, and Hong Kong.

SoCal Port Volumes Mixed In January: Long Beach Up, LA Down

January turned out to be a mixed bag at the Southern California ports, with the Long Beach port reporting across the board container volume growth, while total monthly container volume at the neighboring Los Angeles fell once again into the negative.

Long Beach port officials reported that monthly box volumes handled in January increased by 7.4 percent to 428,805 TEUs compared to the same month in 2009. It was the second straight month of positive growth for Long Beach, after more than a year of negative volume numbers. Total loaded inbound volume increased to 217,925 TEUs, an 8.6 percent increase over January 2009. Total loaded outbound container volume also jumped up compared to the year-ago-period, ending the month up 27.9 percent at 113,183 TEUs.

Across the harbor at the adjacent Los Angeles port, total container volume handled for the month fell to 2.4 percent to 572,969 TEUs, a 2.4 percent decrease over January 2009. Total loaded inbound container volume for January also dipped 6.7 percent, ending the month with 296,305 TEUs handled. On the other hand, total loaded outbound container volume for January jumped a sizable 35.2 percent compared to the same period last year and ending the month with 141,244 TEUs handled.

AAPA to Oppose Labor Lobby Plans

The American Association of Port Authorities, which represents more than 140 of the nation's major ports, has decided to oppose efforts by a handful of members to lobby federal officials to do away with portions of federal trucking deregulation laws.

The decision, approved by the AAPA's government policy committee, goes against current lobbying efforts by AAPA member ports in Los Angeles, New Jersey-New York and Oakland that seek to change portions of the Federal Aviation Administration Authorization Act of 1994. The FAAAA prohibited state and local entities from passing laws or regulations that affect rates, routes and services of interstate trucking.

Officials in Los Angeles have already allocated $265,000 to lobby Congress to change the FAAAA to allow local authorities to regulate trucking firms when it comes to truck security, safety and environmental impact.

The move by Los Angeles, Oakland and NJ/NY is to one degree an effort to circumvent successful legal challenges by the American Trucking Associations to the Los Angeles port's trucking re-regulation program. A federal court found that portions of the Los Angeles port's truck plan violated the FAAAA restriction on local regulation.

The Los Angeles port's truck plan, which was initially developed in tandem with the neighboring Port of Long Beach, seeks to force motor carriers to hire only per-hour employees instead of the current norm of per-load independent owner-operators. The International Brotherhood of Teamsters is also supporting the efforts to change the FAAAA.

The Port of Long Beach, which is no longer involved in the litigation with the ATA, instead chose to regulate trucks, not the carriers, and included no labor requirement in its version of the truck plan. Under current law, the ports can set certain criteria on trucks seeking access to port facilities. Long Beach's version of the truck plan has relied on these criteria to move forward with its version of the truck plan, claiming an 80 percent drop in diesel emissions from port truck-generated pollution without conflicting with the FAAAA language.

Long Beach port officials have also publicly opposed the lobbying efforts to change FAAAA.

In the Pacific Northwest, the Port of Seattle had also approved $60,000 to lobby against changing the FAAAA and supporting the AAPA position of maintaining current federal laws.

The Coalition for Clean and Safe Ports, which include a long list of civic, labor and environmental groups, is supporting the efforts by the Los Angeles, NJ/NY, and Oakland ports to lobby for changes to the FAAAA.

In a statement, the Coalition slammed Seattle port chief executive Tay Yoshitani for seeking the AAPA policy statement against changing the FAAAA.

"This is unconscionable," said Brady Montz, Chair of the Seattle Group of the Sierra Club, which is a member of the Coalition for Clean and Safe Ports.

"For years, the Port of Seattle has claimed that our outdated federal laws limit their ability to protect Seattle's neighborhoods from polluting trucks; and now it turns out that Tay Yoshitani is working behind the scenes to prevent the Port from even having the option to enforce environmental standards for trucking companies," said Montz.

The Coalition also dismissed the importance of the AAPA, telling the Journal of Commerce that the association's position should not be considered representative of the top 10 container ports in the United States.

A spokesperson for the Coalition told the Journal that the AAPA represents many smaller ports that do not have significant truck traffic and are in regions that do not see build-ups of pollution.

According to the AAPA membership list, each of the top 25 busiest container ports in the United States are represented and the top executives at the nation's two largest, Long Beach and Los Angeles, have both served year-long tenures as president of the AAPA in recent years.

SoCal Ports' Box Volumes Down in 2009, up in December

The Southern California ports of Long Beach and Los Angeles both reported double digit declines in cargo volumes for 2009, despite sizable upticks in cargo volumes for the month of December.

According to calendar year-end numbers released Wednesday, the Port of Long Beach handled 5,067,597 TEUs in 2009, a decline of 21.9 percent compared to 2008. As part of the year-end numbers the port also reported a 20.5 percent decline in loaded inbound boxes for 2009 and a 19.9 percent drop in loaded boxes.

The neighboring Port of Los Angeles ended 2009 with 6,748,994 TEUs handled, a 14 percent decline over 2008 volumes. Loaded inbound box volume also dipped 14.9 percent for the year with loaded outbound box volumes falling 6.4 percent.

The monthly numbers for December, however, were much better for both ports. The Port of Long Beach handled 467,237 TEUs in December, up 8.7 percent compared to December 2008. Loaded inbound box volumes during December rose 13.4 percent to 232,586 TEUs and loaded outbounds also rose 30.9 percent to end the month at 123,084 TEUs.

The Port of Los Angeles reported total box volume for December of 562,989 TEUs, up 0.35 percent over the year-ago period. Loaded inbound box volume ended the month at 283,364 TEUs, down 4.4 percent compared to December 2008. On the other end of the spectrum, loaded outbound box volumes jumped 40.2 percent compared to December 2008 to end the month at 153,836 TEUs.

ILWU Endorses Three Long Beach City Council Incumbents

The Southern California District Council of the International Longshore and Warehouse Union has thrown its support behind three Long Beach City Council incumbents in the upcoming April 13 city-wide election while at the same time endorsing an opponent of one of the council strongest labor proponents in a fourth race.

The ILWU District Council, which represents more than 20,000 workers in the region including the ports of Long Beach and Los Angeles, voted Saturday to endorse incumbents Robert Garcia in the 1st District race, Gary DeLong in the 3rd District, and Gerrie Schipske in the 5th District race.

In the 7th District race, where termed-out incumbent Tonia Reyes-Uranga is running a write-in campaign for a third term, the union backed challenger James Johnson, an Assistant City Auditor. The move suprised come City Hall watchers as Reyes-Uranga is considered by many as the strongest pro-union voice on the council.

The union said that while Reyes-Uranga has been a major supporter of the union cause, the District Council felt that Johnson understood the issues of the ports better.

The union's District Council also voted to withhold an endorsement of any candidate in the four-way race for the 9th District, where termed out incumbent Val Lerch is also running a write-in campaign for a third term.

NRDC Files Suit Against Long Beach Port Over ATA Lawsuit Settlement

The National Resources Defense Council and the Sierra Club filed suit last week against the Port of Long Beach, alleging that a federal court-sanctioned agreement that removed the port from ongoing litigation by the American Trucking Associations over the Long Beach and Los Angeles ports' Clean Trucks Program could "reverse efforts to improve air quality in communities surrounding the Port of Long Beach."

The suit, filed Dec. 29, centers around an Oct. 19 agreement reached by port officials and the ATA that effectively ended the Long Beach Port's involvement in litigation brought by the ATA against portions of both ports truck plans in September 2007.

The truck plans, which took effect in October 2008, were designed to reduce ports-generated diesel emissions from ports-servicing trucks that haul containers. The original truck plan, developed and envisioned as a single plan for both ports, eventually morphed into two distinct versions, with each port seeking to approach the truck pollution problem in slightly different ways.

The ATA argued in federal court that a major component of the plan, an access license system that essentially allowed the ports to determine which trucking firms could and could not service port terminals, violated federal law which takes precedence in matters of interstate commerce.

The federal courts agreed and injuncted the concession portion of the truck plan, pending a full court hearing on the matter.

Following this, Long Beach officials determined that their version of the truck plan could move forward without the access license component and still achieve the stated pollution reduction goals, leading to the agreement with the ATA.

The neighboring Port of Los Angeles maintains that the access license component is critical to their version of the truck plan and continue to fight the ATA lawsuit, set to go to court in the next several months.

The Dec. 29 lawsuit by the NRDC follows after an unsuccessful attempt by the group to reverse the Port of Long Beach Harbor Commission agreement at the City Council level, claiming that the agreement violated city law. The Long Beach City Attorney refused to hear the NRDC appeal of the harbor Commission approval of the agreement and stated at the time that the agreement does not violate city law as the NRDC claimed. The NRDC is also alleging in their new suit that the agreement violates Long Beach city law.

LA, LB and Tacoma Box Numbers Down, Seattle Up

The two major ports in California and one of the two major ports in Washington state have reported declines in total containers handled during November, with only the Port of Seattle reporting positive growth.

Total container traffic volume at the Port of Long Beach fell 19.6 percent to 448,151 TEUs in November compared to November 2008. Loaded inbound container volume dropped 14.7 percent for the month, while loaded outbound box volume grew 4 percent. For the first 11 months of the year, the port handled 4,600,360 TEUs, off 24.1 percent from the same period last year.

At the neighboring Port of Los Angeles, total box volume fell to 580,206 TEUs for November, off 12 percent from the same month last year. Loaded inbound box volume fell 11.8 percent for the month, while loaded outbound box volume turned in a sizable 17.8 percent increase over the year-ago period. For the January to November period, total box volume at the port was reported as 6,186,004 TEUs, off 15.1 percent from the same period in 2008.

In Puget Sound, the Port of Seattle turned in its fourth straight month of increased total box volume, reporting 152,593 TEUs handled in November--a 15.1 percent increase compared to November of 2008. The port also reported loaded inbound box volume grew a whopping 34.4 and loaded outbound box volume rose 27.1 percent compared to the year-ago period. Despite the increases, and similar numbers over the past several months, the port remains in the negative for the year. During the first 11 months of the year, the Seattle port handled 1,437,953 TEUs, a decline of 9.7 percent compared to the January to November period in 2008.

In opposition to the positive news from Seattle, the nearby Port of Tacoma turned in its eleventh straight month of negative growth for the year. Tacoma handled 117,884 TEUs in November, an 18 percent drop from the total box volume reported in November 2008. Loaded inbound container volume dropped 27 percent and loaded outbound container volume fell 13.7 percent for the month. For the year to date, the port's total box volume is 1,429,295 TEUs, off 16.7 percent compared to the first 11 months of last year.

Port of LB Tideland Transfer Funds Threatened by City

Three Long Beach City Council members have recommended changing the City Charter to increase the annual transfer from the Port of Long Beach. The Long Beach City Council will consider the increase today at 5 p.m.

Currently, the Port of Long Beach transfers 10 percent of its net revenue to the City of Long Beach on an annual basis. The port also provides additional funding for various city projects ranging from financing of the city’s convention center to providing a financial backstop to the city aquarium.

The Port of Long Beach is the only port that annually transfers money to their City government. According to the Port of Long Beach’s FY10 budget materials, the Port has invested more than $790 million into the City of Long Beach since 1990. That equates to approximately $41.5 million per year on average.

Maritime industry advocates are concerned that increasing the Port’s financial obligation to the city will erode the Port of Long Beach’s competitive position among other West Coast ports.

Port of Long Beach industry advocates urge those concerned about decreases in the Port’s operating funds to attend this evening’s meeting and/or contact Long Beach City Council members and urge them to protect the current status quo.

Long Beach Port IT Head Wins Top Award

The head information technology executive at the Port of Long Beach has been awarded the 2009 Best of California Award for Leadership in Management of Information Technology from the Center for Digital Government.

Doug Albrecht, Director of Information Management for the City of Long Beach Harbor Department, was among six recipients of the annual award selected by state and local government IT leaders throughout California.

The Port of Long Beach, the second busiest container port in the Western Hemisphere, is managed and operated by the 400-plus staff members of the City of Long Beach Harbor Department.

In honoring Albrecht, the CDG cited several recent projects implemented by the port's Information Management division, including the development of state-of-the-art IT architecture for the port's new Security Command and Control Center, the recently opened headquarters for the port's internal security forces that also serves as a regional security center for various federal and local agencies.

Prior to joining the Harbor Department 20 years ago, Albrecht spent 14 years in the private sector, developing records-keeping software.

Truckers Protest SoCal Ports’ Impending Ban

As many as 400 truckers in big rigs clogged Southern California freeways Friday, before arriving in Downtown Los Angeles to blast their horns as they circled City Hall, all in protest of an impending ban by the ports of Long Beach and Los Angeles of all trucks made before 1994.

The truckers, many of whom later rallied in front of City Hall on foot to express their ire at Los Angeles Mayor Antonio Villaraigosa, called for an extension of the ban's Jan. 1, 2010 deadline, better funding for the replacement of trucks, and an investigation into the ports' Clean Trucks Program.

The ports' program, which seeks to dramatically cut diesel emissions from thousands of ports-servicing trucks by 2012, relies heavily on several scheduled bans of certain model year trucks to achieve the air quality goals. Trucks, trains, ships and yard handling equipment at the adjacent ports, known as the San Pedro port complex, have been identified as the largest single-point generator of certain air pollutants in the Los Angeles area, accounting for about 20 percent of the total diesel emissions for the Southern California basin.

Older trucks, according to the ports, produce much greater pollution than newer 2007-or-later model year trucks. The truck program started last October with a ban of more than 2,200 pre-1989 model year trucks. The impending ban on pre-1994 truck models also covers all 1994 to 2003 model year trucks that have not been retrofitted with pollution control devices.

Many of the protesting truck drivers, who operate as independent contractors servicing the ports, said that tens of millions in grant monies handled under the auspices of the truck program have found their way to large trucking companies and not to the individual drivers or small trucking firms which make up the largest percentage of ports-serving trucking companies.

The drivers said that the new ban could put many of them out of business when you consider than a retrofit costs upwards of $20,000 and a new truck costs more than $100,000.

While the truck program was jointly developed at its outset by the two ports, each have adopted differing language during the ramp up to implementation last year. Port of Los Angeles officials have stuck to version that calls for all drivers wishing to enter the port to drop their independent contractor status and work for trucking firms as hourly employees. The neighboring Port of Long Beach has not included any restrictions on employment status of drivers in its version of the program.

The American Trucking Associations, which filed suit against both ports’ programs late last year, recently settled with Long Beach officials, removing the Port of Long Beach from the ongoing litigation. The settlement removed several aspects of the Long Beach program to which the ATA took exception, while allowing the port to maintain environmental, safety and security control over which trucks enter the port's facilities.

The Port of Los Angeles is scheduled to face off against the ATA in a Los Angeles federal court in March 2010.