Business

Retailers Fret as Products Languish on Ships, Docks at Ports

Published

10 years ago

February 13, 2015

Container ships wait at the dock to be unloaded at the Port of Oakland Thursday, Feb. 12, 2015, in Oakland, Calif. Companies that operate marine terminals didn’t call workers to unload ships Thursday that carry car parts, furniture, clothing, electronics, just about anything made in Asia and destined for U.S. consumers. (AP Photo/Ben Margot)

JUSTIN PRITCHARD, Associated Press

LOS ANGELES (AP) — It’s early for many Americans still sloshing through winter to plan their gardens, home improvements and spring sports leagues, but stores gearing up for warmer weather are fretting that they won’t have some products to sell due to a labor crisis at West Coast seaports.

The critical gateways for international trade have become more like parking lots for massive cargo ships that haul a you-name-it selection of consumer goods made in Asia and return there with U.S. exports.

The result: Containers of shovels, fencing, bathroom tiles, shoes, even parts to make summer camp footlockers are stuck at the docks or on ships anchored just offshore.

So are car parts, medical equipment and furniture. And U.S.-produced perishables, including meat and produce, are unable to be sent to Asian consumers.

“Someday the snow will melt back East. There’s a huge market for those home-improvement and garden articles,” said Mark Hirzel, president of the Los Angeles Customs Brokers and Freight Forwarders Association, whose members help companies get imports to distribution warehouses and send exports overseas.

For now, many of those products are stuck.

Dockworkers and their employers have been negotiating a new contract since May, but in recent weeks talks have stalled, all but paralyzing 29 ports that handle about one-quarter of U.S. international trade. That’s around $1 trillion worth of cargo annually.

In the latest twist, companies that run marine terminals locked out the majority of dockworkers Thursday. Employers didn’t call crews to operate the towering cranes that hoist cargo on and off ships.

The partial lockout also is planned for Saturday, Sunday and Monday. Each is either a holiday or weekend for which employers would have to pay dockworkers extra — and with contract dispute, that is not going to happen.

Friday is a normal workday and employers plan to hire full crews.

Employers say dockworkers have intentionally slowed their work for months and won’t be rewarded with higher wages. The dockworkers’ union denies slowing work.

Talks have stalled over how to arbitrate future workplace disputes. Some of the biggest issues, including health care, have been resolved with tentative agreements.

Pay remains an issue in the negotiations. The Pacific Maritime Association, which represents terminal operators and shipping lines, says the average full-time longshoreman makes $147,000 annually.

The International Longshore and Warehouse Union vigorously disputes that figure. Spokesman Craig Merrilees said wages typically range from $26 to $36 an hour and noted that many longshoremen are not full-time employees.

As the two sides quarrel, a backup of ships that extends into the Pacific will only grow. On Thursday, 14 ships laden with containers of goods were anchored outside the ports of Los Angeles and Long Beach; another 11 were awaiting berths outside the ports of Oakland or Seattle and Tacoma in Washington.

Among the importers with goods on the water is AICO Furniture, whose manufacturers are in Asia. In total, 70 containers are either stuck or on their way with no obvious way to get unloaded, said Martin Ploy, the company’s president.

“When Mrs. Jones calls the furniture store and says, ‘I’ve been waiting for months now. When am I going to get this?’ they don’t have a good answer,” Ploy said. “It challenges everybody’s credibility. The consumer gets angry with the retailer, the retailer gets angry with us. And of course, we’re angry with this whole situation here.”

At a Capitol Hill news conference, lawmakers discussed other impacts of the backlog. Rep. Bob Gibbs, R-Ohio, said a major supplier of medical equipment in his state told him it is rationing protective clothing for health care workers because of trouble getting imports.

Exporters also are suffering, notably producers of products such as hay and potatoes, as well as pork and beef.

“There’s nothing we produce in agriculture or forest products that can’t be sourced somewhere else in the world,” said Peter Friedmann, executive director of the Agriculture Transportation Coalition. “You can get it somewhere else in the world, and they are.”

Cargo began moving slowly across the troubled West Coast waterfront months ago. Containers that used to take two or three days to hit the highway have been taking a week or more.

Some importers have reacted by diverting shipments to ports on the East and Gulf coasts. Others have turned to air cargo, paying a premium that can be five or more times more than the cost of sea-borne shipments.

In recent days, the union said companies are exaggerating the extent of congestion so they can cut dockworker shifts and pressure negotiators into a contract agreement.

Negotiations resumed Thursday in San Francisco — the first day the two sides have met since Feb. 6 — amid increasing pressure from elected officials and businesses to reach a deal.

___

AP writers Kevin Freking in Washington, and Raquel Maria Dillon in Los Angeles contributed to this report.

___

Contact Justin Pritchard at http://twitter.com/lalanewsman.

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Oakland Post: Week of December 25 – 31, 2024

The printed Weekly Edition of the Oakland Post: Week of December 25 – 31, 2024

Published

7 hours ago

December 26, 2024

Oakland Post

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Bay Area

Glydways Breaking Ground on 14-Acre Demonstration Facility at Hilltop Mall

Glydways has been testing its technology at CCTA’s GoMentum Station in Concord for several years. The company plans to install an ambitious 28-mile Autonomous Transit Network in East Contra Costa County. The new Richmond facility will be strategically positioned near that project, according to Glydways.

Published

3 days ago

December 24, 2024

Oakland Post

Image of planned Richmond facility courtesy of Glydways.

The Richmond Standard

Glydways, developer of microtransit systems using autonomous, small-scale vehicles, is breaking ground on a 14-acre Development and Demonstration Facility at the former Hilltop Mall property in Richmond, the Contra Costa Transportation Authority (CCTA) reported on social media.

Glydways, which released a statement announcing the project Monday, is using the site while the mall property undergoes a larger redevelopment.

“In the interim, Glydways will use a portion of the property to showcase its technology and conduct safety and reliability testing,” the company said.

The new Richmond development hub will include “over a mile of dedicated test track, enabling Glydways to refine its solutions in a controlled environment while simulating real-world conditions,” the company said.

Visitors to the facility will be able to experience on-demand travel, explore the control center and visit a showroom featuring virtual reality demonstrations of Glydways projects worldwide.

The hub will also house a 13,000-square-foot maintenance and storage facility to service the growing fleet of Glydcars.

“With this new facility [at the former Hilltop Mall property], we’re giving the public a glimpse of the future, where people can experience ultra-quiet, on-demand transit—just like hailing a rideshare, but with the reliability and affordability of public transit,” said Tim Haile, executive director of CCTA.

Janet Galvez, vice president and investment officer at Prologis, owner of the Hilltop Mall property, said her company is “thrilled” to provide space for Glydways and is continuing to work with the city on future redevelopment plans for the broader mall property.

Richmond City Manager Shasa Curl added that Glydways’ presence “will not only help test new transit solutions but also activate the former Mall site while preparation and finalization of the Hilltop Horizon Specific Plan is underway.

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2024 in Review: 7 Questions for Outgoing Stockton Mayor Kevin Lincoln

Lincoln’s decision to run for mayor stemmed from his love of people and his desire to serve his city. He prioritized resolving issues, including homelessness and public safety, among others. Lincoln, a Republican, will transition out of his role as mayor on Dec. 31, after an unsuccessful campaign to represent the 9th Congressional District.

Published

3 days ago

December 24, 2024

Oakland Post

Stockton Mayor Kevin Lincoln. Photo provided by California Black Media.

Kevin Lincoln, outgoing mayor of Stockton, CA, captured during his tenure as a leader dedicated to the city’s progress and community engagement.

By Edward Henderson
California Black Media

Born in Stockton, Mayor Kevin Lincoln says his Army upbringing inspired him to serve others.

Lincoln joined the United States Marine Corps in 2001 and was later assigned to Marine One, serving during President George W. Bush’s administration.

Following his military service, Lincoln worked for one of the nation’s top private security companies for eight years in Silicon Valley. In 2013, he resigned from his corporate position to give back to his community in Stockton through full-time ministry at a local church.

Lincoln’s decision to run for mayor stemmed from his love of people and his desire to serve his city. He prioritized resolving issues, including homelessness and public safety, among others.

Lincoln, a Republican, will transition out of his role as mayor on Dec. 31, after an unsuccessful campaign to represent the 9^th Congressional District.

Recently, California Black Media (CBM) spoke with Lincoln. He reflected on his accomplishments this year and his goals moving forward.

Responses have been edited for length and clarity.

Looking back at 2024, what stands out to you as your most important achievement and why? 

What I prioritize for our city council is our youth. They are the future — not only our city, but this region as a whole.

We were able to invest over $6 million in youth programming and workforce development, and partner with 14 different community-based organizations. We were able to employ over 600 young people through the city of Stockton. We launched even our first ever summer jobs program for the city of Stockton.

How did your leadership and investments contribute to improving the lives of Black Californians? 

It’s about giving people a seat at the table, and not necessarily waiting for people to come to me, but me going to the community, making myself accessible, meeting our community at the point of their need, where they’re at.

What frustrated you the most over the last year?

It’s politics. Because unfortunately, there’s politics in everything. And I say politics impedes progress. You can have a policy, a solution that may not necessarily be 100% perfect. But it’s a good solution for everybody. But because we allow politics to get in the way based off our personal ideologies, oftentimes we can miss opportunities to make an impact for the benefit of the whole.

What inspired you the most over the last year?

My biggest inspiration has been the community and our ability to work together. What’s unique about Stockton, one in 20 jobs are nonprofit jobs in the city of Stockton and even San Joaquin County.

What is one lesson you learned in 2024 that will inform your decision-making next year?

To stay focused. In politics, there’s a lot of opportunity for distractions. There are a lot of influences from the outside — good, bad and indifferent. It’s important to stay focused, have a clear vision, and be committed to that vision.

In one word, what is the biggest challenge Black Californians face?

Economics. When the economy is not healthy, when we’re not thriving, we’re limited. Opportunities are limited.

What is the goal you want to achieve most in 2025?

I just want to continue to be a servant leader and serve our community in whatever capacity I am in.