Focus is on 24/7 operations at the Los Angeles and Long Beach ports hub
Now that the Port of Los Angeles (POLB) and the Port of Long Beach (POLB) are fully engaged in the move to 24/7 operations to deal with a large inbound cargo load caused by high levels of unprecedented demand, equipment shortages, and manpower issues, ports stand ready to take the next steps to increase throughput and address the many challenges they have faced, as they collectively represent around 40 % of imports to the United States.
As reported by LM Yesterday, the White House met this week with US-based business leaders, port leaders and labor leaders to focus on the challenges that US-based ports face, in addition to what each stakeholder group can do to solve various supply chain problems.
One of the key themes of this meeting was to increase supply chain throughput and move goods faster, as well as increase supply chain resilience. A cornerstone of this, he said, is moving to 24/7 operations at the ports of Los Angeles (POLA) and POLB), which collectively account for around 40% of the containers in the world. import to the United States and are set to set new highs in 2021.
While POLB moved to 24/7 operations in mid-September, POLA is now doing the same, introducing night shifts and off-peak weekend hours, which the White House says , should double the number of hours cargo can leave. POLA docks and on the roads to reach the final destinations. Further, he added that the International Longshore and Warehouse Union (ILWU) has stated that its members are committed to working additional shifts, which will provide the necessary capacity to clear existing backlogs.
The White House explained that âunlike the major ports in the world, American ports have not realized all the possibilities offered by operating at night and on weekends. Moving cargo during off-peak hours can help move cargo out of ports more quickly. “
And he described the efforts by some of the biggest retailers, including Walmart, Samsung, The Home Depot, Target, and UPS and FedEx, to take advantage of the 24/7 U.S. port operations, which in total are expected to move 3 500 additional containers per week, overnight, until the end of 2021.
POLA Executive Director Gene Seroka said in a statement that operational details, for POLA’s 24/7 operations, are being discussed and worked out with stakeholders in the chain. supply.
” The importance of [this] The announcement is the commitment of industry leaders responsible for moving freight on behalf of American consumers and businesses to opening up the necessary capacity to deliver, âsaid Seroka. âIt’s a call to action that others must follow. We heard directly from the President, Vice-President, Secretary Buttigieg, Director of National Economic Council Deese and Envoy from Port Porcari. We have a lot of work ahead of us. The Port of LA is called America’s Port because the cargo we handle reaches all corners of the country. In the days to come, we are committed to continuing to be the convener to ensure that the supply chain is up to the American people. “
At a press conference today by POLA, United States Port Envoy John Porcari, port envoy for the Biden-Harris Administration’s Supply Chain Disruption Task Force and former Deputy Secretary and Director of Transportation Operations in the Obama-Biden administration (2009-2014), said it was worth noting that President Biden’s focus on POLA activities and POLB and the movement of goods in general is truly unprecedented.
âIt really shows the direct link between the economy of our country and the chain of movement of goods, which begins in our ports,â he said. âThe switch to a 24/7 push system will really boost [operations], “he said.” Over the past few weeks we’ve gotten commitments from some of the largest beneficial owners of cargo to move to a 24/7 distribution model. It really helps clean up the docks. And, as a nation, we need to move to a 24/7 supply chain. Ports are doing their part, freight owners have stepped up and are doing their part, and now we need to energize the rest of the world. system to recover both the fluidity and the speed of the system. “
Porcari pointed out that container ship dwell times are an excellent measure of how things can progress and improve through 24-hour port operations, with dwell times being measured in different ways, including at berth. , rail or in warehouses and distribution centers. And he added that this private sector-led system is only as good as its weakest link.
âIf containers sit on racks in distribution centers and are not unloaded for 11 days, or even four days, it slows down the whole system,â he said. âDowntime is probably the best KPI in the entire system. We’re also seeing indications that the rest of the system is moving to a 24/7 basis, and we want to make sure we’re measuring that in a specific way as well. “
With the commitments received by both BCOs and POLA and POLB, Porcari said the next step is to move to the tactical part, in the form of operational action meetings that will start tomorrow and focus on the specific issues that are seen. as obstacles to 24/7 operations.
âIt’s not about flipping a switchâ¦ it’s a series of individual, discreet, problem-solving actions that lower the barriers to 24/7 operation and increase those volumes,â said he declared. âAs a nation, it’s really important to have the flexibility and fluidity of 24/7 operations. I think we understand that the entire US supply chain, as well as around the world, was moving slowly before the pandemic. The pandemic has laid bare its increased volumes with different purchasing models, a system that really needs to be changed. The way we can achieve this, in the short term together, is to evolve into more 24/7 operations. We’re going to break down barriers like bowling pins and keep moving forward. ”
POLB point of view: POLB officials underscored the commitment of the International Union of Longshoremen and Warehouses (ILWU) in agreeing to work more from home and allowing private companies to adjust their operations to move goods 24/7. / 7 to eliminate the backlog.
They added that POLB Executive Director Mario Cordero initially introduced the concept of 24/7 port operations before the pandemic, at the port state address in January 2019.
âWhenever we face a crisis here, our philosophy is to channel it into something positive,â Cordero said in a statement. âBefore this unprecedented increase in freight began, we thought 24/7 operations were the future. After all, consumers can shop online anytime, whether it’s 4 p.m. or 4 a.m., and 24/7 is already the norm at our partner ports in Asia. The supply chain really never stops now, and we are grateful to the Biden administration for using its influence to ensure freight is always on the move. “
About the Author
Jeff Berman, Group News Editor Jeff Berman is Group News Editor for Logistics management, Modern material handling, and Supply chain management review. Jeff works and lives in Cape Elizabeth, Maine where he covers all aspects of the supply chain, logistics, freight transportation and material handling industries on a daily basis. Contact Jeff Berman