Container traffic to reach a new high

Container traffic at local seaports is expected to reach a record high in August despite ongoing waterfront labor uncertainties, retailers indicate in a new memo.

The ports of Long Beach and Los Angeles are expected to handle nearly 1 million containers next month as retailers gear up for the back-to-school rush and approaching fall holidays.

This despite a potential strike by clerical workers affiliated with the International Longshore and Warehouse Union Local 63, whose contract expired June 30.

The 950-member union is bargaining for a new three-year agreement with shippers and terminal operators, but has authorized a strike if talks reach a stalemate.

The National Retail Federation, which represents Wal-Mart, Home Depot, Target and other major retailers, said importers are bracing for a potential short-term strike and may use alternate gateways if Southern California seaports grind to a halt.

"These are the nation's two largest retail container ports, and retailers will be watching this situation very closely," said NRF Vice President Erik Autor. "Retailers need to be prepared to handle any disruptions that might occur."

Across America, the nation's largest container-handling seaports are expected to set a record high in August of 1.54 million twenty-foot equivalent (TEU) containers, up 3.4 percent from August 2006 and higher than October's record of 1.51 million TEU.

Source: Long Beach Press Telegram
 July 9, 2007

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