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West Coast port labor issues persist from Los Angeles to Seattle, with supply chain frustration mounting

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West Coast port labor issues persist from Los Angeles to Seattle, with supply chain frustration mounting


A container ship is shown at the Port of Los Angeles in Los Angeles, California, November 22, 2021.

Mike Blake | Reuters

Just hours after the reopening of the West Coast ports on Monday after multiple closures that began at the Port of Oakland last Friday when some union workers refused to report for assignments, issues remain at select terminals within ports from Los Angeles to Seattle, with labor slowdowns and shift closures.

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ITS Logistics tells CNBC its truckers were turned away by the terminal operator Fenix Marine Services, which is owned by ocean carrier CMA-CGM, at the Port of Los Angeles during the first shift Monday. They were picking containers from a variety of ocean carriers. Containers processed through the terminal include those owned by Maersk, OOCL, COSCO Shipping, Sealand (a Maersk company), and Evergreen.

“Navigating the ports on the entire West Coast over the last four days has been extremely frustrating for us and our clients,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. “If it were not for updates from our drivers and our visibility software applications, we would not have even known about terminal closures Friday, throughout the weekend, and into today. Terminal announcements were severely lagging at best if they were issued at all, and announcements from the ILWU were misleading,” he said in a reference to the International Longshore and Warehouse Union, which has been engaged in a protracted battle over a new contract with port management.

Terminal alerts to trucking companies obtained by CNBC starting at 9:39am PT show some import appointments being canceled at Fenix Marine. Later in the morning, the dayside shift was cancelled, though Brashier learned of the cancellations earlier from his truckers who were turned away from picking up their containers.

Another Los Angeles Port terminal, Pacific Container Terminal (owned by SSA) announced Monday morning to truckers they would be closing the dayside shift on Tuesday. The terminal was already closed Monday for a scheduled closure which was announced approximately a week ago.

The Port of Los Angeles, the nation’s busiest port, processes $440 billion in cargo value per year. That market share has declined with more trade moving to the East Coast over the past year, at least partially due to labor issues on the West Coast that had supply chain managers worried about reliability of service. Recently, as the labor negotiations on the West Coast were said to have made progress, more trade started coming back. Port officials tell CNBC there are 52 vessels in route from China to the Port of Los Angeles, a number of vessels they have not seen since the diversion of trade to the East Coast and pullback in shipping orders. Oakland has also seen a recent increase in volume.

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The Port of Long Beach is open and operating today after issues over the weekend, although two of its six container terminals were closed for the day shift. Operators of those terminals made the decision to close based on operational needs and were expected to reopen for the evening shift, the port said in a statement. TTI which closed the dayside shift Monday will open their second shift Monday afternoon but the appointments are light.

Port officials have stressed since Friday that they are operational, with select closures, and the ILWU said talks between the union and port management have not broken down. When issues began last Friday in Oakland, the union described actions by rank-and-file members to not show up for shift assignments as “voicing their displeasure.” The ports’ negotiation body, the Pacific Maritime Association, described it as coordinated union action.

On Monday, port sources said workers reported to assignments, but that slower than required performance led some workers to be relieved of duties. SSA Terminal in Seattle was reported to have released laborers working a vessel for not maintaining standard operating levels.

The ILWU and PMA are not commenting, citing a media blackout.

West Coast ports shut down as labor negotiations drag on

These operational disruptions have a cost to the supply chain and risk more damage to key sectors which ultimately flow through to consumer prices.

Sending drivers to ports on the off-chance that logistics companies may be able to get containers out either incurs dry-runs — when containers cannot be pulled — or congestion limits the amount of turns a driver can do in a day, Brashier explained. The congestion creates a situation where two or three extra truck drivers are needed to be hired to remove the containers stuck in congestion. “Both are charges that we do our best to avoid to prevent inflationary pressure throughout the supply chain,” he said. ITS Logistics is continuing to staff weekends and around the clock despite the new headwinds, he added.

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The National Retail Federation issued a statement on Monday reiterating its position that the Biden Administration should intervene in the labor talks, worried delays could fuel inflation and impact the delivery of products during peak shipping season which runs from July to October, covering back-to-school and holiday seasons.

“It is imperative that the parties return to the negotiating table. We urge the administration to mediate to ensure the parties quickly finalize a new contract without additional disruptions,” said David French, senior vice president of government relations at NRF in a statement.

Project44, a CNBC Supply Chain Heat Map provider, tells CNBC the ongoing labor disruptions at ports along the West Coast will cause significant repercussions on global supply chains if not solved promptly.

MarineTraffic, a CNBC Supply Chain Heat Map data provider analyzed he vessels traveling from China to the ports of Los Angeles and Long Beach and identified some vessels loitering in the water awaiting to dock at the Port of Los Angeles. The MSC Jeongmin was seen leaving the Port of Oakland, traveling down the coast of California, and then stopping in the open waters off of Santa Barbara where it proceeded to circle in place.

With a 40% share of imports flowing into the U.S. passing through these ports, persistence of terminal shutdowns will trigger reduced inventories and a continued shift away from West Coast ports to ports like New York, said Jenna Slagle, senior data analyst with with Project44.

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“These additional disruptions will force retailers and other important shipping partners to continue to shift cargo away from the West Coast ports until a new labor contract is established,” French said.

The current labor strife already has impacted the delivery of containers at ports where issues have arisen.

Container wait times for the ports of Long Beach and Los Angeles are both experiencing a slight increase in dwell times.

North of the ports of LA and Long Beach, the Port of Oakland has seen the most impact as it relates to container wait times.

On Monday, the Port of Oakland’s marine terminals were operational, said Robert Bernardo, spokesman for the port.

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Seattle, WA

Henderson's 14 lead UIC over Seattle U 79-68

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Henderson's 14 lead UIC over Seattle U 79-68


SEATTLE — – Ahmad Henderson II had 14 points in UIC’s 79-68 victory against Seattle U on Friday night.

Henderson also contributed five rebounds, nine assists, and four steals for the Flames (8-4). Modestas Kancleris added 12 points while going 3 of 5 and 6 of 6 from the free-throw line while he also had seven rebounds. Javon Jackson had 12 points and shot 3 of 6 from the field and 5 for 6 from the line.

The Redhawks (4-8) were led by Brayden Maldonado, who posted 22 points and three steals. John Christofilis added 11 points for Seattle U. Maleek Arington also had 10 points, five assists, three steals and two blocks.

UIC took the lead with 40 seconds to go in the first half and never looked back. The score was 34-32 at halftime, with Jackson racking up seven points. UIC outscored Seattle U in the second half by nine points, with Henderson scoring a team-high nine points after halftime.

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NEXT UP

UIC next plays Sunday against Illinois State on the road, and Seattle U will visit Washington on Monday.

——

The Associated Press created this story using technology provided by Data Skrive and data from Sportradar.br/]

Copyright © 2024 ESPN Internet Ventures. All rights reserved.

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Seattle, WA

Uber sues the City of Seattle

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Uber sues the City of Seattle


Uber is taking Seattle to court. The Seattle Times reported Uber is suing to block a law that would regulate when it can deactivate a driver.

The lawsuit claims that the city is infringing on the company’s rights by limiting its ability to manage drivers based on performance and safety concerns.

“Uber believes that ensuring consumers receive reliable, efficient and, above all, safe deliveries is more important than allowing couriers with consistently low consumer ratings — a sign of serious performance and/or safety issues — to keep disappointing consumers. The city does not,” the suit read.

The Seattle City Council passed the law in 2023, with strong support from then-council member Theresa Mosqueda.

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MyNorthwest News: WA Uber, Lyft drivers getting paid family, medical leave benefits

“To deactivate a driver or to cut someone off to have their ability to have an income with no warning and no recourse is just wrong,” she said at the time.

The law, set to take effect on New Year’s Day, aims to provide more transparency and fairness in the deactivation process. It requires companies like Uber to establish a “reasonable” policy for deactivations, give drivers advance notice and conduct fair investigations.

Uber argues that the law will hinder its ability to quickly address issues related to driver performance and safety, potentially leading to poorer service for customers. The company also contends that the law violates its constitutional rights by forcing it to associate with problematic drivers and disclose confidential business information.

Crime blotter: Uber passenger recovering after being shot on way to Bellevue

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The law is part of a broader effort by Seattle lawmakers and labor advocates to protect gig workers, who often lack the ability to unionize. It includes provisions to prevent deactivations based on insufficient driving hours, low customer ratings, or declined ride offers, except in extreme cases.

Additionally, companies must provide drivers with records justifying their deactivation and allow them to contest the decision. Seattle Mayor Bruce Harrell, who signed the bill into law, emphasized the importance of protecting app-based workers from sudden deactivations that could threaten their livelihoods. However, Uber maintains that its existing policies are sufficient to ensure safety and reliability for consumers.

Contributing: Frank Lenzi, KIRO Newsradio

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here. 

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Seattle, WA

Seattle Metro bus murder suspect arrested last year for stabbing, killing roommate

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Seattle Metro bus murder suspect arrested last year for stabbing, killing roommate


The man who is wanted for the murder of a Seattle Metro bus driver was arrested a year ago for the murder of his roommate, but released due to a lack of evidence, according to the prosecutor’s office.

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Seattle Police say 53-year-old Richard Sitzlack murdered 59-year-old Shawn Yim early Wednesday morning.

Yim, a King County Metro driver, only had two passengers on the bus when he was killed: the accused murderer and a witness, who FOX 13 Seattle spoke to on Thursday morning. 

Seattle Police released a photo of the accused killer more than 30 hours after the murder.

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Police identify 53-year-old Richard Sitzlack in deadly Seattle bus driver stabbing. (Seattle Police Department)

However, police tell FOX 13 Seattle someone reportedly saw Sitzlack downtown around 8 p.m. Wednesday. That is about five miles from where the attack happened in the University District, and 15 hours after the attack.

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Seattle police would not provide any more details on the sighting of Sitzlack.

“We are seeking the public’s help in finding this person,” said Detective Eric Muñoz with SPD. “The Metro coach drivers all have his photograph, every police officer in the city has his photograph and information.”

A year ago, Sitizlack was behind bars for a similar incident.

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Officials from the King County Prosecuting Attorney’s office said Sitzlack was arrested for murder in connection with the death of his roommate. 

However, no charges were filed, and Sitzlack was released.

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“Both police and prosecutors looked at the admissible evidence and thought we can’t disprove the claim of self-defense,” said Casey McNerthney with the King County Prosecuting Attorney’s Office.

According to the prosecutor’s office, Sitzlack claimed his roommate tried to kill him with a machete. He fought back and stabbed his roommate to death, then called the police, according to the report. 

“If King County prosecutors had the evidence to charge him with murder, we would have charged him with murder,” said McNerthney.

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The transit union is offering a $10k reward to the person who helps find the murderer. 

Anyone with information is asked to call the Seattle Police Department’s Violent Crimes Tip Line at 206-233-5000

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