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LA port that operates 24 hours a day to mitigate cargo log jams

Washington — One of the busiest ports in the country operates 24 hours a day. Efforts to alleviate cargo bottlenecks The changes that the White House announced before vacations were trying to mitigate supply chain problems led to shortages and higher consumer costs.

The Port of Los Angeles is open 24 hours a day, 7 days a week, joining the neighboring Port of Long Beach, California, which began doing the same thing last month. Major ports in Asia and Europe operate 24 hours a day for many years.

Extended operation According to the White House, cargo travel time at the Port of Los Angeles will almost double. He said the additional shift was agreed by the International Longshore and Warehouse Union on behalf of the dock workers.

Long Beach Port struggled to increase cargo flow after extending its opening hours. Truck drivers complained that limiting container loading and unloading was a hassle. The shortage of truck drivers and warehouse workers is also causing problems throughout the supply chain. It is unknown how many Los Angeles terminals will be in operation 24 hours a day, 7 days a week and when they will be operational.

Gene Seroka, Managing Director of the Port of Los Angeles, said nighttime details are still under consideration with supply chain companies.

“Today’s announcement has the potential to be a game changer,” said President Biden. “Not all of these products work on their own, so I say the possibility. To have a positive impact across the country and for families, major retailers ordering products. We also need a freight carrier to carry goods from stores and ships to factories and stores. “

NS American supply chain struggles to adapt Imports surge as consumers shift from services to household goods, including electronics, and businesses are rushing to replenish their pandemic and depleted inventories. Hundreds of thousands of containers are moored in the ports of Los Angeles and Long Beach. These ports are the gateway to the West Coast, which travels more than a quarter of all American imports. Dozens of ships are moored offshore, with a waiting time of three weeks.

Satellite images show the size of the backlog at California’s ports, as ongoing supply chain issues threaten the holiday shopping season. Jennifer Smith of the WSJ explains the causes of ship and cargo stagnation. Photo: Planet Labs Inc

Supply chain growls lead to higher prices and help drive inflation. Slight acceleration in September, The policy agenda poses another challenge to Mr. Biden, who is bound by parliamentary negotiations. The government has faced a series of supply chain problems, Affects everything from timber to semiconductors, And it has been looking for ways to partner with private sectors to mitigate the backlog.

Walmart Ltd,

FedEx Ltd

When

United Parcel Service Ltd

According to the White House, it is one of the companies that is stepping up operations at the port in the hope that other companies will adopt the same cycle.

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According to the White House, the commitment of the six companies will allow 3,500 additional containers to move at night each week.

During the first eight months of this year, the adjacent ports of Los Angeles and Long Beach processed more than 13.6 million containers, measured in units equivalent to 20 feet. This is a trade indicator for the shipping industry. This includes the equivalent of 893,098 inbound containers loaded in August, or more than 200,000 each week.

To avoid delays, some retailers like Wal-Mart

Home Depot Ltd

When

Costco Wholesale Ltd

that is Pay for your charter ship As part of a broader plan to mitigate the turmoil.

Mr Biden had a de facto meeting with the port director, union officers and chief executive officer (including:) on Wednesday afternoon.

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Samsung Electronics Ltd

, And the Truck and Railroad Association.

“This is a good first step, but it’s very surprising, it’s a measure of how serious this is, and it requires the personal involvement of the President of the United States to implement this obvious measure. It seems, “says Bjorn van Jensen. Vice President of Global Supply Chain for Sea-Intelligence ApS, a Danish-based oceanographic data company.

“It’s also encouraging to see President Biden meeting with representatives of both the importer and the truck and rail community,” he added. “Without the full involvement of all these supply chain components, the harbor can be left open 24 hours a day, as the containers simply pile up in the yard.”

There was disagreement among key players in the supply chain, including port workers, truck drivers, warehouse operators, railroads, and retailers, about 24/7 work and pointing.

Southern California ports are typically open from 8 am to 5 pm and from 6 pm to 3 am on weekdays. It is open only for a limited time on Saturdays and is usually closed on Sundays.

When Long Beach Port initially expanded its business hours to 24 hours a day, 4 days a week, truck companies couldn’t attract any more trucks, saying the process was cumbersome. Noel Hasegaba, Deputy Secretary-General of the Port of Long Beach, said the program has been adjusted to ease restrictions in recent weeks and some truck drivers have begun to spend early morning hours.

Some terminal operators say there is no point in extending the time if many of the regular pickup slots are no longer used by truck drivers. Sarferinho, vice president of the SSA Terminal, which operates three terminals on Long Beach, said:

Truck drivers say they are plagued by a lack of equipment needed to move containers and warehouses that are full or open within a limited amount of time.

John McLaurin, chairman of the Pacific Merchant Shipping Association, which represents the shipping company, said the White House’s plans cover only part of the supply chain.

“The marine terminal gates are open and offer most of the extended time, but are not being used,” he said in a statement. “The problems are that the truck hasn’t been used for a long time due to a lack of drivers, the warehouse is full and there is a shortage of personnel, the chassis that carries the containers has not been returned, and there is a lack of equipment. It’s a system. “

Treasury Secretary Janet Yellen confirmed in an interview with CBS Evening News on Tuesday that there were some shortfalls in the coming months.

“But the goods are well supplied,” she said. “And I don’t think there’s any reason consumers are upset that they don’t have the products they want to buy for Christmas.”

Write to With Alex Really alex.leary@wsj.com And with Paul Burger Paul.Berger@wsj.com

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LA port that operates 24 hours a day to mitigate cargo log jams

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