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Released July 08, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The labor contract for 29 West Coast ports has expired, but normal operations are ongoing as the two sides continue to negotiate. Nonetheless, the National Association of Manufacturers (NAM) has warned a work stoppage or slowdown at the ports of Los Angeles and Long Beach would have dire consequences for the U.S. supply chain and economy. Industrial Info is tracking more than $1 billion worth of active capital-spending projects at the two major ports, which handle about 40% of all cargo containers entering the U.S. The majority of the spending is for a major project at Long Beach to support cargo movement.
The contract between the Pacific Maritime Association (PMA) and International Longshore and Warehouse Union (ILWU) lapsed on June 30, although that did not come as a surprise; the two organizations had previously said they were unlikely to reach a deal before the agreement's expiration date. The ILWU represents dockworkers primarily on the West Coast, Hawaii and in British Columbia, and the PMA represents shipping companies and port terminal operators.
"The ports of Los Angeles and Long Beach support a major share of cargo relied upon by American businesses and consumers, supporting supply chains across the entire country," NAM President and Chief Executive Officer Jay Timmons said in a press release. "With supply chains already stretched thin, inflation at its highest level in four decades and concerns of a recession rising, any disruption would mean a devastating hit to our economy and to manufacturers' competitiveness."
He added: "The disruption would be felt immediately. Manufacturing jobs will be lost if parts and supplies don't arrive. New equipment, machinery and products can't be built when ships are backed up and there is no one available to unload and process cargo. Our overseas customers won't wait for us to fix these disruptions, either--they'll simply find other suppliers, weakening U.S. manufacturing competitiveness in the process."
The NAM cited a study by Inforum Economics that indicated a 15-day closure at the two ports would cut the U.S. gross domestic product (GDP) by nearly half a billion dollars per day, for $7.5 billion total.
With that said, infrastructure improvements at the ports serve to benefit cargo movement throughout California and across the country. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a list of detailed reports for projects at the ports, including construction of Long Beach's Pier B On-Dock Rail Support Facility, and related work.
The project is intended to double the port's capacity to handle cargo by train. Construction is expected to kick off in 2023, with the entire facility completed by 2032. Subscribers can click here for related project reports and click here for a port profile.
According to a May press release, the port expects the project to be built in 12 stages, starting with the development and construction of the first five from 2023 to 2026.
The project received federal environmental approval in April, which triggered $52.3 million in grant funding from the U.S. Department of Transportation's Maritime Administration; it already has received funding from both the Los Angeles County Metropolitan Transportation Authority and the California Department of Transportation.
The port is planning more than $2.6 billion in infrastructure projects over the next 10 years, according to a July press release. California Governor Gavin Newsom's 2022-23 fiscal budget, which he has signed into law, includes $1.2 billion for "port-specific projects that increase goods movement capacity on rail and roadways at port terminals, including railyard expansions, new bridges, and zero-emission modernization," according to a budget summary.
Industrial Info is tracking almost $25 billion worth of active capital-spending projects at U.S. cargo ports. Subscribers can click here for a list.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The contract between the Pacific Maritime Association (PMA) and International Longshore and Warehouse Union (ILWU) lapsed on June 30, although that did not come as a surprise; the two organizations had previously said they were unlikely to reach a deal before the agreement's expiration date. The ILWU represents dockworkers primarily on the West Coast, Hawaii and in British Columbia, and the PMA represents shipping companies and port terminal operators.
"The ports of Los Angeles and Long Beach support a major share of cargo relied upon by American businesses and consumers, supporting supply chains across the entire country," NAM President and Chief Executive Officer Jay Timmons said in a press release. "With supply chains already stretched thin, inflation at its highest level in four decades and concerns of a recession rising, any disruption would mean a devastating hit to our economy and to manufacturers' competitiveness."
He added: "The disruption would be felt immediately. Manufacturing jobs will be lost if parts and supplies don't arrive. New equipment, machinery and products can't be built when ships are backed up and there is no one available to unload and process cargo. Our overseas customers won't wait for us to fix these disruptions, either--they'll simply find other suppliers, weakening U.S. manufacturing competitiveness in the process."
The NAM cited a study by Inforum Economics that indicated a 15-day closure at the two ports would cut the U.S. gross domestic product (GDP) by nearly half a billion dollars per day, for $7.5 billion total.
With that said, infrastructure improvements at the ports serve to benefit cargo movement throughout California and across the country. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a list of detailed reports for projects at the ports, including construction of Long Beach's Pier B On-Dock Rail Support Facility, and related work.
The project is intended to double the port's capacity to handle cargo by train. Construction is expected to kick off in 2023, with the entire facility completed by 2032. Subscribers can click here for related project reports and click here for a port profile.
According to a May press release, the port expects the project to be built in 12 stages, starting with the development and construction of the first five from 2023 to 2026.
The project received federal environmental approval in April, which triggered $52.3 million in grant funding from the U.S. Department of Transportation's Maritime Administration; it already has received funding from both the Los Angeles County Metropolitan Transportation Authority and the California Department of Transportation.
The port is planning more than $2.6 billion in infrastructure projects over the next 10 years, according to a July press release. California Governor Gavin Newsom's 2022-23 fiscal budget, which he has signed into law, includes $1.2 billion for "port-specific projects that increase goods movement capacity on rail and roadways at port terminals, including railyard expansions, new bridges, and zero-emission modernization," according to a budget summary.
Industrial Info is tracking almost $25 billion worth of active capital-spending projects at U.S. cargo ports. Subscribers can click here for a list.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
