West Coast Port Congestion Spawns Cargo Diversions

The port complexes of Los Angeles-Long Beach and Seattle-Tacoma saw some congestion relief over the weekend. The situation has turned sour in Oakland, after longshoremen walked off their jobs for three straight shifts. The failure of negotiators for the ILWU and Pacific Maritime Association to reach a contract settlement continues to hang like a dark cloud over the entire U.S. West Coast. Port congestion problems at some of North America’s largest gateways had a noticeable impact on vessel productivity in the first six months of 2014, Some shippers with sensitive cargo are diverting containers away from the U.S. West Coast to the port of Virginia, despite higher transportation costs, to avoid congestion and potential labor action. Truck turn times at the Los Angeles-Long Beach port complex have increased more than 30 percent since last year, according to statistics provided by the Harbor Trucking Association, a result of crisis-level congestion.

(Source JOC Newswire)