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LA/LB HARBOR - Congestion Update
from the Marine Exchange of Southern California

It appears we're on the verge of a major "congestion event" again here in Southern California, as the ships began "stacking up" at anchor today. We currently have 11 ships anchored (8 outside and three inside), with three more scheduled to go to anchor upon their arrivals later today (diverted from their scheduled berthing by their agents). Tomorrow, we're predicting 24 more arrivals, and if the current vessels at anchor have not yet moved into their berths, then we can only assume that the number of vessels at anchor will increase on a day-by-day basis.

There are labor shortages on the docks. The Pacific Maritime Association (PMA) reports that they were 15 gangs "short" on allocations today (0800-1700 shift), and they are 27 gangs "short" on allocations for tonight's shift (1800-0300). For tomorrow, the shortage will be at least 32 gangs for the day shift (0800-1700). These numbers are most likely to rise as more and more vessels arrive over the next several days. Plus, PMA is not allowing the allocation of any "hoot owl shifts" (0300-0800) during this labor shortage situation.

To compound all this, the ILWU announced a "stop work meeting" for Thursday night, which will only make things worse regarding this back-log that is currently building up. We understand that the PMA tried in vain to get the ILWU to cancel this "stop work meeting", but the union insisted on having it. The "stop work meeting" will run from 1800 through 0800 (hence, there will be NO allocation of night gangs for that Thursday night shift).

Also, the "Fourth of July" weekend is nearly upon us now (including the scheduled ILWU stop-work holiday on July Fifth -- "Bloody Thursday" -- per their contract), and this traditionally has been a time of labor shortages on the docks as well. Many longshoremen may take the long weekend off from work, beginning on Friday, and running through until Tuesday morning.

As a reminder, PMA allocates longshore "gangs" to the ships in port based on a "first-come, first-served" basis -- with the ship's actual time of arrival (as reported and archived by the Marine Exchange) being the controlling factor. Passenger (Cruise) vessels are usually exempt, however, and will be given sufficient labor to handle their particular needs while in port.