Low blows for US ports
The 'Occupy' movement seems intent on disrupting port operations on the US West Coast
Falling volumes, bun fights for dredging works, misguided protestors disrupting operations – US ports are certainly having a tough time of it.
With shipping capacity far in excess of demand, container shipping has started to crumble under the pressure. Freight rates have dropped off, and price wars are back in the headlines to sustain high utilisation.
US ports are concerned. Los Angeles has confirmed it is revisiting its current budget in light of the “slower than expected cargo volumes”. Long Beach recorded October figures down by 20% over the previous year.
And the fight to secure dredging commitments from the underfunded Army Corps of Engineers could soon turn ugly. With so many ports looking to capitalise on the Panama Canal expansion come 2014, there’s a sad inevitably that not all will get their wish.
The Maritime Administration’s David Matsuda conceded as much at last month’s TOC Americas in Panama. Put on the spot by a wiley delegate, he said he didn’t like to speculate on which ports would get dredging and which wouldn’t. His measured response threw in the phrases “limited budget” and “necessary works”.
And if there was still some uncertainty, he added: “Enough ports will get there - the cargo will get there one way or another.”
Compounding these two dramas is the Occupy movement, who seem intent on disrupting port operations on the West Coast.
The Occupy movement is an international protest movement primarily directed against economic and social inequality. US ports seems to be attracting protest to disrupt trade and to target wealthy funds that own terminals.
Occupy protestors managed to shutdown Oakland port in November. Police estimated that a crowd of about 3,000 had gathered at the port at the height of the demonstration, which disrupted operations by overwhelming the area with people and blocking exits with chain-link fencing and illegally parked vehicles. The organisers said they wanted to halt "the flow of capital" at the port.
Anchorage, Los Angeles, Oakland, Portland, San Diego, Tacoma, and Seattle are all on the Occupy hit list for December. One bright spot is the International Longshoreman and Warehouse Union’s announcement that it is not supporting the actions of the Occupy protestors.
But it’s just a small break in an otherwise overcast sky for US ports, particularly those on the West Coast.
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