Business
The power keeps going out at the Port of Los Angeles, raising worries about its green future
The morning along the San Pedro docks began typically enough, summery but cool, as the first shift powered up the Port of Los Angeles. The giant cranes that fill the sky like skeletal bridges hummed to life. Semis already were lined up at the front gates, ready to take on loads of shipping containers as big as mobile homes.
But at a little past 7, an all-too-familiar trouble flared. A blip in the electric power lines so short it barely registered on the monitors of the L.A. Department of Water and Power brought major operations at the busiest seaport in the Western Hemisphere to an abrupt stop.
If the public face of the port is the forest of cranes and mountain range of cargo containers, its invisible heart is a network of computers that controls almost the entire operation. That system, along with a growing multitude of electric-powered equipment and vehicles, depends on an uninterrupted supply of electricity. Rebooting all those smart devices, sometimes requiring workers to climb to the tops of 200-foot cranes, can take several hours, no matter how brief the outage.
By the time everything was back up and running on that August morning, unloading schedules were scrambled, frustrated terminal operators struggled in vain to make up lost time and the freeway was backed up by dozens of semis.
“It’s a significant direct financial impact,” said Jeff Vogel, general counsel to the National Assn. of Waterfront Employers, whose members include container-handling companies. “We operate in a just-in-time economic model where getting that vessel in and out of the port as quickly as possible is critical.”
And the impact of power interruptions goes beyond the immediate costs and frustration. It threatens a commitment to meet major, long-term climate change goals by further electrifying port operations and the huge distribution system it supplies.
The brief surge was one of three already this month and the 12th power-related outage of the year so far. And the recent disruptions hit particularly hard as summer is a busy season for the ports, with back-to-school and Halloween deliveries as well as retailers getting a jump on Christmas shipments. The Port of L.A. had a record July, handling more than 939,000 containers.
“It’s a pretty big deal with the amount of cargo they have to move,” said Thomas Jelenić, a vice president at the Pacific Merchant Shipping Assn., which represents the terminal operators.
It will be an even bigger deal down the road. The port, with the DWP, is aiming to phase out greenhouse gas emissions by the end of the decade.
To meet this goal, the port will need almost twice as much power as it currently uses by the end of the decade, DWP estimates. But the surges and dips have raised serious concerns about whether the port and its tenants will have reliable energy to meet their needs.
The private companies that operate container-handling terminals long ago electrified the massive ship-to-shore cranes and are now investing millions to transition forklifts, gantry cranes and yard tractors that move and stack containers, as well as other vehicles and equipment that run mostly on diesel.
Container ships docked at the Port of Los Angeles.
(Luis Sinco/Los Angeles Times)
“We’re up against the zero-emission mandate by 2030, and I don’t know how that happens right now,” said one terminal executive who asked not to be identified. None of the seven container terminals at the Port of L.A. would talk publicly about their grievances, saying they were concerned how municipal authorities who are their landlord and power supplier might react.
Though the Port of L.A. and its Long Beach sister facility are on the leading edge, other seaports around the country also have been moving to electrify their operations. That’s placed more demand on the grid, with occasional brownouts having been reported at some ports in the East and Gulf coasts, said the Waterfront Employers’ Vogel.
But the problem appears to be particularly acute at the Port of Los Angeles, he said.
At the Port of Long Beach, where electricity is supplied by investor-owned Southern California Edison, terminal operators say power interruptions haven’t been an issue. In fact, Sean Gamette, the port’s managing director of engineering, couldn’t recall a single outage this year.
It’s helped that Southern California Edison’s lines are mostly underground and that the port, deemed a vital infrastructure, is exempt from brownouts, an outage resulting from a temporary drop in voltage. In the mid-2000s some $180 million was invested to upgrade the electric infrastructure at the port, said Gamette.
Gene Seroka, executive director of the Port of Los Angeles, was careful not to overstate, or minimize, the disruptions and the threat to the operations. Power surges tend to affect only some of the terminals, he said, and typically everything is rebooted in a couple of hours. If you have on average one brief outage a month, that might add up to one lost shift out of 36, Seroka said.
“I don’t think it’s shutting down this port. It is not terribly impacting competitiveness.” But he added: “If I’m a terminal operator and I’ve got to pay workers for a shift that they’re not working, that’s very painful. And so we’ve got to fix it.”
The issue isn’t just financial. Outages pose safety risks, too. At one terminal yard, a power surge in mid-July caused a driverless cargo-moving truck to crash into a container. “You can have a crane operator get violently stopped and jostled,” said another terminal manager.
Terminal operators say they think the source of the outages is at the utility, and have wondered whether the DWP has even recorded the momentary outages that cause costly delays on the docks.
DWP officials say it’s not a one-sided issue and, at the request of The Times, furnished a synopsis of the dozen outages this year. The utility said two were due to birds hitting power lines, one was caused by a truck explosion and another because a power transformer went bad.
But according to the account provided to The Times, in five outages, each lasting 10 seconds, no cause was found. Simon Zewdu, a senior manager of the DWP’s power system, said such momentary outages are usually due to an issue on the user’s side.
“Increasingly we’re seeing equipment installed by our customers that are very sensitive to minor voltage fluctuations,” he said.
Zewdu said the DWP is working to expand substations at the Port of L.A. and construct new underground lines as part of a $500-million project to be completed by 2029. These efforts should help both add power and improve reliability.
In addition, Zewdu and the Pacific Merchant Shipping Assn. began a fresh round of meetings this week to discuss strategies to mitigate outages and with an eye to their zero-emission goal. Among other things, Zewdu said he wants to install monitoring equipment on circuits on both the utility and terminal sides to discern the source of the power surges — something he said hadn’t been done yet because the terminal operators had not made a request or given permission to DWP’s power quality-monitoring team.
Jelenić, of the Pacific shipping group, said that until Monday he wasn’t even aware such a monitoring program at the DWP existed.
“Right now we’re deficient in both our near-term and long-term needs,” he said, but added that his group had a very encouraging meeting with DWP officials this week. “They were concerned about issues we’re having, they proposed solutions, and made clear, open lines of communication.”
Business
Nike to Cut 1,400 Jobs as Part of Its Turnaround Plan
Nike is cutting about 1,400 jobs in its operations division, mostly from its technology department, the company said Thursday.
In a note to employees, Venkatesh Alagirisamy, the chief operating officer of Nike, said that management was nearly done reorganizing the business for its turnaround plan, and that the goal was to operate with “more speed, simplicity and precision.”
“This is not a new direction,” Mr. Alagirisamy told employees. “It is the next phase of the work already underway.”
Nike, the world’s largest sportswear company, is trying to recover after missteps led to a prolonged sales slump, in which the brand leaned into lifestyle products and away from performance shoes and apparel. Elliott Hill, the chief executive, has worked to realign the company around sports and speed up product development to create more breakthrough innovations.
In March, Nike told investors that it expected sales to fall this year, with growth in North America offset by poor performance in Asia, where the brand is struggling to rejuvenate sales in China. Executives said at the time that more volatility brought on by the war in the Middle East and rising oil prices might continue to affect its business.
The reorganization has involved cuts across many parts of the organization, including at its headquarters in Beaverton, Ore. Nike slashed some corporate staff last year and eliminated nearly 800 jobs at distribution centers in January.
“You never want to have to go through any sort of layoffs, but to re-center the company, we’re doing some of that,” Mr. Hill said in an interview earlier this year.
Mr. Alagirisamy told employees that Nike was reshaping its technology team and centering employees at its headquarters and a tech center in Bengaluru, India. The layoffs will affect workers across North America, Europe and Asia.
The cuts will also affect staffing in Nike’s factories for Air, the company’s proprietary cushioning system. Employees who work on the supply chain for raw materials will also experience changes as staff is integrated into footwear and apparel teams.
Nike’s Converse brand, which has struggled for years to revive sales, will move some of its engineering resources closer to the factories they support, the company said.
Mr. Alagirisamy said the moves were necessary to optimize Nike’s supply chain, deploy technology faster and bolster relationships with suppliers.
Business
Senate committee kills bill mandating insurance coverage for wildfire safe homes
A bill that would have required insurers to offer coverage to homeowners who take steps to reduce wildfire risk on their property died in the Legislature.
The Senate Insurance Committee on Monday voted down the measure, SB 1076, one of the most ambitious bills spurred by the devastating January 2025 wildfires.
The vote came despite fire victims and others rallying at the state Capitol in support of the measure, authored by state Sen. Sasha Renée Pérez (D-Pasadena), whose district includes the Eaton fire zone.
The Insurance Coverage for Fire-Safe Homes Act originally would have required insurers to offer and renew coverage for any home that meets wildfire-safety standards adopted by the insurance commissioner starting Jan. 1, 2028.
It also threatened insurers with a five-year ban from the sale of home or auto insurance if they did not comply, though it allowed for exceptions.
However, faced with strong opposition from the insurance industry, Pérez had agreed to amend the bill so it would have established community-wide pilot projects across the state to better understand the most effective way to limit property and insurance losses from wildfires.
Insurers would have had to offer four years of coverage to homeowners in successful pilot projects.
Denni Ritter, a vice president of the American Property Casualty Insurance Assn., told the committee that her trade group opposed the bill.
“While we appreciate the intent behind those conversations, those concepts do not remove our opposition, because they retain the same core flaw — substituting underwriting judgment and solvency safeguards with a statutory mandate to accept risk,” she said.
In voting against the bill Sen. Laura Richardson, (D-San Pedro), said: “Last I heard, in the United States, we don’t require any company to do anything. That’s the difference between capitalism and communism, frankly.”
The remarks against the measure prompted committee Chair Sen. Steve Padilla, (D-Chula Vista), to chastise committee members in opposition.
“I’m a little perturbed, and I’m a little disappointed, because you have someone who is trying to work with industry, who is trying to get facts and data,” he said.
Monday’s vote was the fourth time a bill that would have required insurers to offer coverage to so-called “fire hardened” homes failed in the Legislature since 2020, according to an analysis by insurance committee staff.
Fire hardening includes measures such as cutting back brush, installing fire resistant roofs and closing eaves to resist fire embers.
Pérez’s legislation was thought to have a better chance of passage because it followed the most catastrophic wildfires in U.S. history, which damaged or destroyed more than 18,000 structures and killed 31 people.
The bill was co-sponsored by the Los Angeles advocacy group Consumer Watchdog and Every Fire Survivor’s Network, a community group founded in Altadena after the fires formerly called the Eaton Fire Survivors Network.
But it also had broad support from groups such as the California Apartment Association, the California Nurses Association and California Environmental Voters.
Leading up to the fires, many insurers, citing heightened fire risk, had dropped policyholders in fire-prone neighorhoods. That forced them onto the California FAIR Plan, the state’s insurer of last resort, which offers limited but costly policies.
A Times analysis found that that in the Palisades and Eaton fire zones, the FAIR Plan’s rolls from 2020 to 2024 nearly doubled from 14,272 to 28,440. Mandating coverage has been seen as a way of reducing FAIR Plan enrollment.
“I’m disappointed this bill died in committee. Fire survivors deserved better,” Pérez said in a statement .
Also failing Monday in the committee was SB 982, a bill authored by Sen. Scott Wiener, (D-San Francisco). It would have authorized California’s attorney general to sue fossil fuel companies to recover losses from climate-induced disasters. It was opposed by the oil and gas industry.
Passing the committee were two other Pérez bills. SB 877 requires insurers to provide more transparency in the claims process. SB 878 imposes a penalty on insurers who don’t make claims payments on time.
Another bill, SB 1301, authored by insurance commissioner candidate Sen. Ben Allen, (D-Pacific Palisades), also passed. It protects policyholders from unexplained and abrupt policy non-renewals.
Business
How We Cover the White House Correspondents’ Dinner
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Politicians in Washington and the reporters who cover them have an often adversarial relationship.
But on the last Saturday in April, they gather for an irreverent celebration of press freedom and the First Amendment at the Washington Hilton Hotel: The White House Correspondents’ Association dinner.
Hosted by the association, an organization that helps ensure access for media outlets covering the presidency, the dinner attracts Hollywood stars; politicians from both parties; and representatives of more than 100 networks, newspapers, magazines and wire services.
While The Times will have two reporters in the ballroom covering the event, the company no longer buys seats at the party, said Richard W. Stevenson, the Washington bureau chief. The decision goes back almost two decades; the last dinner The Times attended as an organization was in 2007.
“We made a judgment back then that the event had become too celebrity-focused and was undercutting our need to demonstrate to readers that we always seek to maintain a proper distance from the people we cover, many of whom attend as guests,” he said.
It’s a decision, he added, that “we have stuck by through both Republican and Democratic administrations, although we support the work of the White House Correspondents’ Association.”
Susan Wessling, The Times’s Standards editor, said the policy is a product of the organization’s desire to maintain editorial independence.
“We don’t want to leave readers with any questions about our independence and credibility by seeming to be overly friendly with people whose words and actions we need to report on,” she said.
The celebrity mentalist Oz Pearlman is headlining the evening, in lieu of the usual comedy set by the likes of Stephen Colbert and Hasan Minhaj, but all eyes will be on President Trump, who will make his first appearance at the dinner as president.
Mr. Trump has boycotted the event since 2011, when he was the butt of punchlines delivered by President Barack Obama and the talk show host Seth Meyers mocking his hair, his reality TV show and his preoccupation with the “birther” movement.
Last month, though, Mr. Trump, who has a contentious relationship with the media, announced his intention to attend this year’s dinner, where he will speak to a room full of the same reporters he often derides as “enemies of the people.”
Times reporters will be there to document the highs, the lows and the reactions in the room. A reporter for the Styles desk has also been assigned to cover the robust roster of after-parties around Washington.
Some off-duty reporters from The Times will also be present at this late-night circuit, though everyone remains cognizant of their roles, said Patrick Healy, The Times’s assistant managing editor for Standards and Trust.
“If they’re reporting, there’s a notebook or recorder out as usual,” he said. “If they’re not, they’re pros who know they’re always identifiable as Times journalists.”
For most of The Times’s reporters and editors, though, the evening will be experienced from home.
“The rest of us will be able to follow the coverage,” Mr. Stevenson said, “without having to don our tuxes or gowns.”
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