Tuesday, October 3, 2023
HomeHeadlinesLos Angeles Port Chief Calls for More Federal Funding for Congested West...

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Los Angeles Port Chief Calls for More Federal Funding for Congested West Coast Ports

The U.S. federal government needs to invest more in West Coast ports, said the head of the Port of Los Angeles, which is the nation’s biggest gateway to Asia and is grappling with record backlogs.

The government has invested about $11 billion in the eastern Gulf coast compared with roughly $1 billion in the West Coast over the past decade, Gene Seroka said in a Bloomberg Television interview with Ed Ludlow on Monday.

“That’s got to change,” he said.

The pandemic has thrown the vital world of logistics into a tailspin, spurring delivery delays and goods shortages. Vessels are lining up outside ports because inward-bound shipments are pouring into the world’s largest economy just as inland transportation — like trucking and railroads — contends with its own bottlenecks. Shipping containers aren’t moving fast enough to distribution centers and warehouses — where space is lacking — to keep the supply chain running smoothly.

Truck capacity has been a stumbling block, with only 50% of registered truck drivers calling to the port at least once a week, said Seroka. He said 30% of truck appointments go unused every day.

For the upcoming holiday season, many retailers have pulled forward inventory, he said. “I feel confident the retail community will rise to the occasion.”

Global supply-chain issues are likely to last until “at least” February or March next year, with the backlog taking even longer to resolve, Jim Monkmeyer, the president of transportation for Deutsche Post AG’s DHL Supply Chain unit, said in a separate Bloomberg Television interview.

In the U.S. specifically, the logistics market will see “ups and downs for the next year, at least,” with a lack of labor being a key constraint, he said. “We’ve got to pay more,” Monkmeyer said.

The Biden administration in June released a multi-pronged strategy to secure critical supply chains in products ranging from medicines to microchips. In August, it appointed former deputy Transport Secretary John Porcari as port envoy to the task force looking at easing the congestion.

The administration has also negotiated a record $17 billion in investments in port infrastructure as part of the bipartisan infrastructure deal, which will likely go to a vote by the House on Thursday. The funds would help address congestion and supply chains over time by investing in repair and maintenance backlogs and reduce congestion and emissions near ports.

[bloomberg]

Related Posts

Video

Finance & Economy
Shipping News
Ports

Scorpio Tankers takes options to buy back over 20 ships

In a relevant SEC filing, Scorpio Tankers announced extensive vessel repurchases via sale and leaseback arrangements, including for the 2016-built LR2 product tanker STI...

TOP Ships Announces Reverse Stock Split

TOP Ships announced that it has determined to effect a 1-for-12 reverse stock split of the Company’s issued common shares. The Company’s shareholders approved the...

Carnival Earnings Outlook Misses While Fuel Costs Near 15-Year High

Carnival Corp. posted a profit for the first time since 2020 but issued a fourth quarter earnings outlook that missed Wall Streets’ expectations as...

Sphinx Investment Corp Increases Stake in OceanPal

On September 28, 2023, an OceanPal SEC filing revealed that Sphinx Investment Corp. had raised its ownership in OceanPal, now holding a substantial stake...

Star Bulk Announces the Repurchase of 10 Million of Its Common Shares

Star Bulk announced that it entered into a Repurchase Agreement (with OCM XL Holdings, LP, a limited partnership incorporated in the Cayman Islands, pursuant...

MSC to buy 50% stake in Italian passenger rail group Italo

Shipping group MSC has entered into a binding agreement to acquire a 50% stake...

Higher capesize rates drive Baltic index higher

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index snaps 4-day winning streak as capesize rates slip

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index scales 11-month peak on strong capesize rates

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Baltic index scales over 9-month high on capesize surge

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Ukraine: 5 More Cargo Ships Head For Black Sea Ports – report

Five more ships are on their way to Ukrainian sea ports using a new corridor opened to resume predominantly agricultural exports, an alternative arrangement...

Piraeus Port reports strong H1 2023 results

The Piraeus Port Authority SA, which operates Greece’s biggest and busiest port, reported a 48.8-percent increase in pre-tax earnings for H1 2023 – 49.4...

Greece names Thessaloniki port operator preferred bidder for Volos port

Greece’s privatisation agency has named the operator of Thessaloniki port as the preferred bidder for acquiring a 67% stake in the port of Volos,...

Drewry: Port Throughput Index Down 2.1% in July

The Global Container Port Throughput Index fell 2.1% MoM in July 2023, with the small rises recorded in Africa and Oceania having been insufficient...

Vopak: Agreement with Infracapital on sale of Rotterdam chemical terminals

Vopak announces that it has reached an agreement with Infracapital on the sale of its three chemical terminals in Rotterdam (Botlek, TTR and Chemiehaven)...