With independent truckers protesting California’s AB5 law, dockworkers embroiled in contract negotiations, and logjammed container vessels unable to offload in a timely fashion, imports are rerouting shipments to Gulf and East Coast ports. Logistics insiders see a global reset occurring that will push an increased number of truck driving jobs east, away from the Golden State.
“The acceleration in the long-term shift that had already been occurring due to the underlying cost economics was driven by the early and major congestion on the West Coast,” a McCown Report by Blue Alpha Capital reportedly states.
Imports at the country’s top East Coast and Gulf ports surged by 9.7 percent in June, led by the ports of New York-New Jersey, Houston, and Savannah, Georgia. And the Port of Virginia reported a record-breaking 317,000 TEUs during June, a 36,000 TEU year-over-year gain. By contrast, imports only ticked up by 2.3 percent on the West Coast.
Importers appear to be searching for more reliable and time-efficient routing following last year’s headline-grabbing bottleneck debacle at Long Beach, Los Angeles, and Oakland port systems. But that doesn’t mean Gulf and East Coast facilities are not feeling a pinch. Docking wait times have risen and the Port of Savannah has fallen behind with upwards of 42 ships idling off the coast.
“While the West Coast represented over two-thirds of containerships waiting for berths in January, it is only one-third now as the ships at anchor and resulting congestion has shifted eastwards,” the McCown Report states. “The last month has seen an increase in this eastward shift and now Houston and New York have as many containerships waiting for berths at LA/LB combined.”
Congestion and economics are playing a significant role in the trade route reset, but reliability has become a factor as well. West Coast dockworkers and longshoremen are in the midst of contentious contract negotiation. Another strike by the 22,000 unionized workers would effectively shut down 29 Pacific Coast ports. With 70,000 independent truck drivers facing uncertainty under the AB5 law that bans self-employment, some worry a mass exodus will hamstring ports.
These problems have not been lost on Florida Gov. Ron DeSantis, who recently reminded importers the Sunshine State operates 15 viable ports.
“Florida’s continued investment in our seaports have made it a destination for companies from around the world frustrated with the logjams at Pacific coast ports,” Gov. DeSantis reportedly said. “We will continue to make the investments necessary to bolster our supply chain and improve our infrastructure to bring more business to Florida’s seaports.”
Recent gains by the Florida port system include new shipping lanes from Asia to the U.S. calls in Jacksonville, Mexico and Central America to Tampa Bay, and China to Port Everglades, among others. Truckers can anticipate increased Gulf and East Coast career opportunities where the cost of diesel is significantly lower.
Sources:
https://www.porttechnology.org/news/ilwu-contract-concern-pushing-box-imports-to-us-east-coast/
https://www.seatrade-maritime.com/ports/congestion-shifts-us-east-coast-ports
Sounds like the writing is on the wall, clear as crystal and written in blood and sweat, Commie-fornia. You’d best abandon the AB5 before the workers and drivers that are your life’s blood abandon YOU!
Seriously, …is there any state collectively dumber than California these days?
New York and Illinois are a close 2nd
Pa isn’t far behind.