The vital role that US West Coast ports play in the nation’s economy is under the spotlight as historic global supply chain congestion continues into the new year. Through much of the COVID-19 pandemic, extraordinary cargo volumes have slowed goods movement nationwide, creating enormous pressure on businesses and consumers.
With these disruptions expected to continue well into 2022, it is clear that the congestion is a system-wide challenge requiring system-wide solutions. Every supply chain link — warehouses, trucks, trains, truck chassis, and other vital equipment, in addition to marine terminals — must operate efficiently and in concert to bring relief. The Pacific Maritime Association (PMA) is actively working to address this challenge with our partners across the supply chain, including the trucking, rail, and warehousing industries. We have also been pleased to participate in the White House task force to advance solutions and will continue to work closely with federal, state, and local leaders.
Recent PMA-commissioned research has highlighted the need for systemic solutions, revealing a supply chain collapse that originated far from the docks. Equipment shortages, warehouse capacity limits, and intermodal chokepoints are all combining to dramatically slow the movement of goods through America’s distribution channels.
Cooperation will be essential to support critical US maritime gateways and the thousands of jobs and billions in economic activity they support. The PMA welcomes the cooperation between ILWU longshore workers and West Coast ports amid record cargo volumes during the pandemic and is hopeful this spirit will extend to our upcoming contract negotiations. Modernizing terminals through automation will be a key issue, as it has proven to be an essential tool in moving cargo productively, protecting local economies, and meeting stringent environmental regulations.
Bottom line: Solutions encompassing every stage of the supply chain will be needed to relieve this historic congestion challenge.