Late last week, the two largest United States-based ports—the Port of Los Angeles (POLA) and the Port of Long Beach (POLB) whom collectively comprise about 40% of all containerized cargo entering the U.S. each year, as well as 30% of all containerized exports—rolled out new measures focused on improving freight movement and reduce delays, at a time when record volumes continue to occur ostensibly every month.
The ports said that this effort was announced following consultation with multiple supply chain stakeholders and the U.S. Department of Transportation (DOT).
Under the new measures, the ports said that each port will expand its hours in which trucks pick up and return containers, with POLB to maximize its nighttime operations, and POLA to expand weekend operating gate hours.
POLA’s initiative, which it labeled “Accelerate Cargo LA,” will operate on a pilot basis, according to POLA Executive Director Gene Seroka, focusing on ensuring gate availability meets cargo demands and also provides greater transparency to improve efficiency.
What’s more, both ports said they have called on maritime terminal operators, in an effort to “incentivize the use of all available gate hours,” with a focus on available night gate hours,” in an effort to reduce congestion and maximize cargo throughput capacity, too.
“We appreciate the leadership of the Biden-Harris Administration in marshalling a response to the unprecedented global supply chain disruption so acutely felt here at the San Pedro Bay Port Complex,” said POLA’s Seroka in a statement. “These steps, in addition to what has previously been recommended, demonstrate that the Port of Los Angeles will continue to innovate in order to manage this historic cargo surge.”
And POLB Executive Director Mario Cordero said in the same statement that: “The Port of Long Beach is prepared to take bold and immediate action to help the supply chain move the record cargo volumes that keep our economy moving, and we appreciate the support and leadership shown by the Biden-Harris Administration.”
POLA and POLB also noted that they will work closely with the trucking community, in order to make sure that motor carriers know how to leverage incentivized gate hours, as well as expanded opportunities that will be created to move cargo at non-peak times. They also said that ports are calling on terminals and motor carriers to look at other corrective measures, too.
On a media conference call on September 15, POLA’s Seroka said compared to August 2020, which was a record month for the port, August 2021 welcomed 84 container vessels at berth, including 11 extra loaders, with 26 vessels at anchor at the end of August, including some of the new entrants with smaller ships. Seroka said about 205,00 TEU are on these vessels (the 26 vessels at anchor) and will be processed later this month at POLA.
What’s more, Seroka said that, for the month of August, POLA continues to average an exchange rate per vessel of more than 11,300 TEU, which Seroka called “the best in the business for loading and unloading containers, with POLA averaging nearly 16 ships per day at berth in August, marking 60% more berth activity compared to pre-pandemic times.