Port of LB Has 3rd Busiest Year Ever

By Mark Edward Nero

Despite issues with traffic congestion during the fourth quarter of the year, 2014 turned out to be a good year for cargo at the Port of Long Beach, according to data the port released Jan. 20.

Cargo container trade climbed 1.3 percent at the port in 2014 compared to 2013, bringing the port its third-busiest calendar year ever, behind the peak periods of 2006-2007.

Last year’s overall volume rose to 6.82 million TEUs. Imports increased 1.8 percent to 3,517,514 TEUs, according to port data, while exports declined 5.9 percent to 1.6 million TEUs and the number of empty containers being sent overseas to be loaded with cargo rose 8.2 percent to nearly 1.7 million TEUs.

In December 2014 alone however, the numbers weren’t so great. Port terminals moved 567,237 TEUs through the harbor during the month, a 2.6 percent decrease compared to December 2013. Also, imports dropped 5.1 percent to 276,516 TEUs and exports fell 11.2 percent to 131,496 TEUs. On the bright side, the number of empties rose to 159,225 TEUs, an increase of 11.5 percent.

Coincidentally, 2014 was also the third-busiest year ever for the adjoining Port of Los Angeles, according to data. Container volumes at the port increased six percent over the previous year, with total volumes reaching 8.34 million TEUs, just behind the 8.4 million TEUs moved in 2007 and 8.5 million in 2006.

The latest monthly cargo numbers for the Port of Long Beach can be seen at http://www.polb.com/economics/stats/latest_teus.asp. For additional details on the cargo numbers, visit www.polb.com/stats.

FMC: Port Congestion a Priority in 2015

By Mark Edward Nero

US Federal Maritime Commission Chairman Mario Cordero announced to staff on Jan. 13 that his priority for the Commission in 2015 is addressing congestion issues that are plaguing the nation’s ports.

Numerous ports across America have been affected by terminal congestion in 2014 and early 2015, most notably the adjoining port of Los Angeles and Long Beach, the two largest, busiest seaports in North America.

Terminal management for West Coast ports has blamed the backlogs in part on work slowdowns orchestrated by organized labor, but labor has stated that “managerial mistakes,” including chassis shortages and a lack of dock space for containers is to blame.

Last September, FMC commissioners began to lead public forums concerning port congestion and international supply chain efficiency issues. Cordero said that this focus is in keeping with the Commission’s 2014-2018 strategic plan, which was unveiled in November 2013 and includes in its goals maintaining “an efficient and competitive” ocean transport system.

“Among the Commission’s statutory goals is the assurance of an efficient ocean transportation system,” Cordero said. “The efficient operation of the nation’s ports is squarely within that mandate and paramount to the Commission’s responsibilities. As we move forward, I look forward to a thorough review of the issues and views that have been provided from various maritime industry stakeholders.”

Cordero also said the Maritime Commission would continue its role in “protecting the shipping public and addressing unreasonable or unjust practices by carriers or marine terminal operators.”

Jensen, Vigor Collaborate on SF Fireboat

By Mark Edward Nero

Crowley Maritime Corp. subsidiary Jensen Maritime has been selected to provide detail production engineering and construction management on an 88-foot by 25-foot Super Pumper NFPA Type II Fireboat for the San Francisco Fire Department. Jensen completed the fireboat contract-design for the city in 2012.

Vigor Industrial is slated to build the vessel at its 27-acre facility in Seattle. Due out in late summer 2015, the state-of-the-art workboat is expected to operate in the San Francisco Bay, San Pablo Bay and the Pacific Ocean within five miles of shore and the adjoining inland waterways.

The vessel is planned primarily for pumping, firefighting, rescue, emergency medical services and patrol. It will feature CBRNE (chemical, biological, radiological, nuclear, explosives) detection capabilities, as well as SCBAs (self-contained breathing apparatus) and local air supply ports to keep crews safe.

It was designed in accordance with NFPA 1925, the National Fire Protection Association’s standard detailing requirements for the construction of new marine fire-fighting vessels, and the American Bureau of Shipping’s rules for building and classing steel vessels less than 90 meters (295 feet) in length.

The boat will have two fire-fighting modes, according to Jensen. In normal mode, it will be able to pump 18,000 GPM of water at 150 PSI through two 3,000-GPM and two 1,500-GPM deck monitors and two 1,500-GPM under deck monitors and 18-by-3-inch and 10-by-5-inch manifolds.

In super-pumper mode, it will be able to pump 6,000 GPM of water at 150 PSI through the forward monitors, according to Jensen, and 8-by-3-inch manifolds and 6,000 GPM of water at 300 PSI through 10-by-3-inch and 10-by-5-inch manifolds.

“We have developed a good working relationship with Jensen,” San Francisco Fire Chief Joanne Hayes-White said in a statement. “They have designed a state-of-the-art, multi-operational vessel for us and we are looking forward to getting our new fireboat into the San Francisco Bay.”

POLA Has 3rd Busiest Year in its History

By Mark Edward Nero

Container volumes at the Port of Los Angeles increased six percent in 2014 over the previous year, with total volumes reaching 8.34 million 20-foot-equivalent units, according to newly released port data.

2014 was the third busiest year in the port’s history, just behind the 8.4 million TEUs moved in 2007 and 8.5 million in 2006.

“The 2014 numbers are an encouraging indication that the national economy continues to improve,” port Executive Director Gene Seroka said, while also touching on congestion issues that plagued the port during 2014. “Beyond that, the second half of the year ushered in a mix of unprecedented challenges due to transformational changes in the shipping line business.”

“We are working hard to help our customers and supply chain partners overcome those challenges and urge them to work together with us to find solutions,” he said.

In December 2014, overall volumes increased one percent compared to December 2013. Total cargo for December 2014 was 658,567 TEUs, compared to 653,358 TEUs in December 2013.

Container imports last month rose 4.4 percent, from 322,500 TEUs in December 2013 to 336,674 TEUs in December 2014.

Exports however, declined 12 percent, falling from 172,261 TEUs in December 2013 to 152,112 TEUs in December 2014. US exports have been declining in recent months due to weaker demand abroad and a stronger US dollar, which makes US goods more expensive.

Combined, total loaded imports and exports fell 1.2 percent, from 494,761 TEUs in December 2013 to 488,786 TEUs in December 2014. Factoring in empties, which increased seven percent year over year, the overall December 2014 volume of 658,567 TEUs represented a one percent increase compared to December 2013’s 653,358 TEUs.

Current and past data container counts for the Port of Los Angeles may be found at:

http://www.portoflosangeles.org/maritime/stats.asp

Olympia Port Welcomes New Terminal Director

By Mark Edward Nero

Leonard “Len” Faucher has joined the Port of Olympia as Marine Terminal Director. Jan. 12 was his first day on the job.

Faucher comes to the port with extensive experience in the maritime industry sector, the majority of it on the East Coast. From January 2007 to March 2014, he was an operations manager with Greenwich, Connecticut-based Charles R. Weber Co. Inc., one of the oldest and largest ship brokerage companies in the United States. In that role, Faucher managed a team that handled all vessel and cargo operations and related accounting for the company.

Previously, he spent five years with Hess Corp., where he was responsible for scheduling barging and shipping activities across 20 terminals in New York Harbor.

Faucher earned a BS in marine transportation from the US Merchant Marine Academy, an MBA from University of New Hampshire, and is said to be currently working on a Ph.D. in business administration.

He served in the US Naval Reserves as a commissioned officer and teaches business courses as an adjunct professor at St. Martin’s University, a Catholic university in Lacey, Wash.

“Len has demonstrated impressive leadership in cargo, vessel and terminal operations, international marketing and contract negotiations,” port Executive Director Ed Galligan said in a statement announcing the hire. “He has worked extensively with unions and has a history of activity in community groups as well as industry organizations.”

Young Bros. Sues Ex-Tug Capt. Over Grounding

By Mark Edward Nero

Hawaii-based freight handling and transportation company Young Brothers Ltd. has filed a lawsuit against the captain and first mate on one of its tugboats, alleging that the first mate’s inebriation led to the grounding of a tug and barge last Halloween.

The company, which is a subsidiary of Seattle-based Foss Maritime, filed the suit Jan. 7 in US District Court. It alleges that the captain of the tug Moana Holo knew that the first mate was drunk but still sailed out of Nawiliwili Harbor on Oct. 31, 2014. The tug and the barge Maka’ala became separated and struck a breakwater. Maka’ala’s hull was damaged and it lost a 30-by-15-foot skeg; the Moana Holo suffered a breach to its hull.

According to the lawsuit, members of the 10-person crew were ordered to take an alcohol test immediately after, but did not take the tests as required.

The captain and first mate were subsequently fired by the company, but thus far no criminal charges have been pursued against them.

The US Coast Guard says it cannot comment on the matter because it is still investigating the incident. Young Brothers also would not comment other than in a statement it issued Jan. 8.

“We are not able to comment on this pending lawsuit related to the incident at Nawiliwili Harbor last October,” Young Brothers Vice President Roy Catalani said in the prepared statement. “However, Young Brothers regrets that this incident occurred. We’re also grateful that no employees were injured, no customer cargo was lost or damaged, and no fuel or oil leaked from our vessels.”

Young Brothers has so far declined to state the amount of damages it is seeking from the two defendants.

PMA Halts Night Ops at LA-Long Beach Complex

By Mark Edward Nero

Operations at the adjoining ports of Los Angeles and Long Beach are approaching “complete gridlock,” and crews will no longer be assigned to load and unload cargo ships overnight at the two ports, according to the Pacific Maritime Association.

The move is in response to actions set in motion by the International Longshore & Warehouse Union, the PMA said Jan. 12.

The PMA, which has been engaged in contract negotiations with the ILWU the past eight months, claims that the union has orchestrated a situation that is seriously exacerbating congestion problems at the largest ports on the West Coast.

“Since late October 2014, the ILWU has crippled what were fully productive terminals in the Pacific Northwest and Oakland, and exacerbated a difficult congestion issue at the ports of Los Angeles and Long Beach by intentionally withholding dozens of essential skilled workers each shift for the past 10 weeks,” the Maritime Association said in a statement.

On Jan. 5, the US Federal Mediation and Conciliation Service said it was joining the talks to help both sides reach an agreement, however the PMA says that even with federal help, talks have gone nowhere so far.

“Since the mediator joined the talks, no further agreements have been reached and ILWU work slowdowns have continued to the point where many terminals are in peril of complete gridlock,” according to the PMA.

The ILWU, however, contends that the congestion has been caused by “managerial mistakes,” including a lack of dock space for containers and shortages of chassis. The union also has criticized the cancelling night shifts and reducing bulk operations, saying it will do nothing to ease congestion.

“The PMA appears to be abusing public ports and putting the economy at risk in a self-serving attempt to gain the upper hand at the bargaining table, and create the appearance of a crisis in order to score points with politicians in Washington,” the union said in a Jan. 13 statement.