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»Issue 7, Volume 07 www.scarbrough-intl.com » July 2007 |
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BUSINESS NEWS 2007 Peak Season Update U.S. container ports should stay congestion-free throughout the peak season, according to the July Port Tracker report released July 5th by Global Insight and the National Retail Federation. The Port Tracker analyzes monthly cargo growth at the ten largest North American ports. Even though the rate of growth has not been as strong as 2006, North American container volumes are expected to reach an all-time high in August. The volume is expected to level off in September and break a new record in October. With most ports expected to have single-digit growth rates, the marine terminals, railroads, and motor carriers should not have any problems handling the projected container volumes. The only possible disruption could be from the unionized office clerical workers in Los Angeles-Long Beach. Their contract expired on June 30th, and union members have authorized a strike if negotiations break down. Talks are expected to continue after the July 4-5th holiday. These workers process the paperwork for shipping lines and marine terminals. If they chose to strike, it is possible the dock workers will honor the picket lines. There are several potential problems that could cause congestion at the ports next year. The federal government is introducing the Transportation Worker Identification Credential program which could cause driver shortages. Background checks and legal residency requirements could force drivers out of the business. Another possible problem truckers may face is the clean truck licensing plan in LA-Long Beach. The goal of this proposed program is to reduce air pollution by supporting the industry’s replacement of old trucks. This proposed plan would result in the immediate scrapping of 16 percent of harbor trucks. Finally, the International Long Shore and Warehouse Union is beginning their contract negotiations with the waterfront employers in early 2008, about five months before the current contract expires. This is viewed as good news for continued smooth operations at West Coast ports. -- Nick Jung, Import Freight Forwarding Customer Service Representative |
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