Page 17 - THE SOUTH CHINA BUSINESS JOURNAL
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eed, many shippers started diverting cargoes through automation. With trade volumes
to East and Gulf coast ports in anticipation of expected to continue growing this is especially
potential labor disruptions last year and that important. Many of our ports are already at
accelerated this year. As labor talks continue capacity and cannot handle any more traffic
to stall, there is growing concern that these without degradation in service levels. Without
diversions could become permanent. improvements from automation and other
changes, our less-competitive ports will hurt the
In addition to pay, another critical element competitiveness of U.S. businesses. But these
in these negotiations impacts our long-term steps can only be done through agreement with
competitiveness, and that is the productivity of the port workers.
these ports, or how quickly they can load and
unload ships. Bottom line
A high level of productivity means containers and The Chamber continues to encourage both
goods move quickly through ports, helping keep parties to reach an equitable agreement and end
transportation costs low and getting products to the uncertainty for American businesses and is
store shelves quickly. Unfortunately, our nation’s actively in communication with parties involved in
ports rank as some of the least productive in the the negotiations.
world. The World Bank Group and IHS Markit
recently ranked the top ports in the world and Unfortunately, the West Coast port negotiations
the U.S. failed to put a single port in the top 50. are just one of many labor agreements that have
Our two most important ports – Los Angeles the potential to impact the nation’s supply chains
and Long Beach – ranked #328 and #333, this year. Two major express carriers are set to
respectively, while our most productive port was enter negotiations, and several major airlines are
the port of Philadelphia at #89. also in the process of contract negotiations.
Cutting the performance gap will mean We will continue to monitor these situations
modernizing our ports the way the rest and update Chamber members with new
of the world has already done – in part developments as they occur.
SOUTH CHINA BUSINESS JOURNAL 14
to East and Gulf coast ports in anticipation of expected to continue growing this is especially
potential labor disruptions last year and that important. Many of our ports are already at
accelerated this year. As labor talks continue capacity and cannot handle any more traffic
to stall, there is growing concern that these without degradation in service levels. Without
diversions could become permanent. improvements from automation and other
changes, our less-competitive ports will hurt the
In addition to pay, another critical element competitiveness of U.S. businesses. But these
in these negotiations impacts our long-term steps can only be done through agreement with
competitiveness, and that is the productivity of the port workers.
these ports, or how quickly they can load and
unload ships. Bottom line
A high level of productivity means containers and The Chamber continues to encourage both
goods move quickly through ports, helping keep parties to reach an equitable agreement and end
transportation costs low and getting products to the uncertainty for American businesses and is
store shelves quickly. Unfortunately, our nation’s actively in communication with parties involved in
ports rank as some of the least productive in the the negotiations.
world. The World Bank Group and IHS Markit
recently ranked the top ports in the world and Unfortunately, the West Coast port negotiations
the U.S. failed to put a single port in the top 50. are just one of many labor agreements that have
Our two most important ports – Los Angeles the potential to impact the nation’s supply chains
and Long Beach – ranked #328 and #333, this year. Two major express carriers are set to
respectively, while our most productive port was enter negotiations, and several major airlines are
the port of Philadelphia at #89. also in the process of contract negotiations.
Cutting the performance gap will mean We will continue to monitor these situations
modernizing our ports the way the rest and update Chamber members with new
of the world has already done – in part developments as they occur.
SOUTH CHINA BUSINESS JOURNAL 14
