• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living

2

Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs

3

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI

1

Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living

2

Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs

3

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
TechShipping

Slow progress at America’s biggest (and most dysfunctional) port

By
David Z. Morris
David Z. Morris
Down Arrow Button Icon
By
David Z. Morris
David Z. Morris
Down Arrow Button Icon
February 6, 2015, 10:54 AM ET
CROPPED: Aerial Views Of The $2.4 Billion Alameda Corridor Rail Cargo Expressway Project
The Port of Los Angeles in Feb. 2013.Photograph by Tim Rue — Bloomberg/Getty Images
Add Fortune on Google for similar content.

The adjacent ports of Los Angeles and Long Beach in California are the beating heart of United States international trade. They handle two-thirds of all ocean cargo volume on the West Coast, and more than one-third of all volume in the U.S. Their steel ventricles sprawl over more than 11 square miles of land—one-third the size of Manhattan. Tugboats weighing tons look like bathtub toys next to container ships the size of city blocks. Squadrons of semi trucks and mile-long trains disappear into the horizon, pumping goods from across Asia eastward to American manufacturers, businesses, and consumers.

Since last summer, though, changes in shipping technology and practices at L.A.-Long Beach have slowed the flow of trade through the port. Starting in October 2014, a labor slowdown by longshoremen worsened problems and spread them to other ports along the West Coast. Cargo unloading times have more than doubled to the slowest rate in a decade. Twenty-five-ton containers are now stacked five deep, frustrated truckers spend hours waiting for their loads, and full ships wait at anchor for an open terminal.

Retailers avoided a disastrous disruption of the prime Christmas shipping season—late summer and early fall—only through canny planning and some expensive short-term solutions. “Leading into the [labor] negotiations, retailers were looking at contingency planning options, knowing how negotiations typically go,” says Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation. “[They’ve been] bringing cargo in early, and shifting to non-West Coast ports like Canada, Mexico, East Coast, Gulf Coast. And the last option is air cargo.”

Those workarounds kept store shelves stocked for the 2014 winter holidays, but the costs of compensating for port congestion have been substantial. Ocean carriers have begun to levy congestion surcharges against cargo owners, despite some initial hesitation. And while the Targets (TGT) and Wal-Marts (WMT) of the world were able to adjust their surface shipping plans, many small and mid-size retailers were forced to rely on air cargo to get Christmas shipments on time. Gold says that additional costs of air cargo for individual retailers have run into the millions of dollars.

The single biggest factor in the costly chaos at L.A.-Long Beach is amazingly mundane: a change in the handling of the long, wheeled chassis that allow semi trucks to pull shipping containers from the ports to their destinations inland.

For many years, these chassis were owned by the same ocean cargo companies that own container ships. But many shipping lines, in part to heal balance sheets wounded by the global recession, have recently spun off or sold their chassis to equipment leasing companies including Flexi-Van, TRAC, and Direct ChassisLink (a former Maersk subsidiary). The transition has been extremely rocky.

“The chassis availability is scrambled, because there are all these companies that were supposed to have taken over, but didn’t have things entirely together,” says Val Naronha, president of the port research firm Digital Geographic. “If I [as a trucker entering a terminal] haven’t made my own arrangements for a chassis, I turn around. I’ve achieved nothing at the terminal having waited all that time.”

The chassis logjam may begin to clear up this month as an agreement among chassis providers establishes a common pool of chassis, making them easier to manage. But other factors contributing to congestion have no clear resolution timeline. Poor pay and conditions for truckers have caused driver shortages and discontent, while overall U.S. rail shipping capacity is under pressure from rising oil and gas loads from Midwest fracking operations. It’s simply getting harder to get loads out of port, even as overall volume increases.

The ongoing automation of L.A.-Long Beach has also, ironically, added to congestion, as longshoremen have demanded work-stopping safety reviews at the automated terminal run by TraPac. Other problems include bottlenecks caused by ever-larger ships and extra congestion caused by the timing of port workers’ lunch breaks.

For ports and labor unions, who are now in the ninth month of negotiations to renew a contract that expired in July, the sclerosis at L.A.-Long Beach has become ammunition in a war of position: the ports argue that longshoremen are engaged in an illegal slowdown, but workers blame the ports and carriers.

“The true origins of the crisis involve other industry problems and bad decisions,” says Craig Merrilees, spokesperson for the International Longshore and Warehouse Union, which represents West Coast dockworkers. “The resulting mess has left customers angry, public port officials frazzled, and workers frustrated because the congestion makes their jobs more dangerous.”

But there has been rising congestion even at West Coast ports with fewer operational issues than L.A.-Long Beach, which some say proves that a labor slowdown is a major factor. “The ports at Seattle and Tacoma had been running at about 25 to 35 [container] moves per hour,” says Wade Gates, a representative of the Pacific Maritime Association, which negotiates with the longshoremen on behalf of port operators. “And at one point in time [in late 2014] that actually moved to as low as 10 to 14.”

“At L.A. and Long Beach,” continues Gates, “We’re seeing the unions . . . make a difficult situation even worse.”

One of the situation’s few bright spots is that a complete labor stoppage is unlikely. “They will not shut down the ports,” says Bill Mongelluzzo of the shipping trade publication The Journal of Commerce. “The ILWU doesn’t want to attract federal mediation.”

Even once the chassis gridlock clears and the labor slowdown ends, though, the multiple chronic issues facing West Coast ports have observers wondering whether the future will be much smoother.

“We know trade is going to continue to grow,” says the NRF’s Gold. “Looking at how our ports work today, we’re not ready.”

About the Author
By David Z. Morris
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

After a nearly 800% explosion, this AI stock’s U.S. debut could signal if the market can still boom—or is headed for a bust
AItech stocks
After a nearly 800% explosion, this AI stock’s U.S. debut could signal if the market can still boom—or is headed for a bust
By Jason MaJuly 5, 2026
5 hours ago
Meet Atlas, the humanoid robot that delivered the game ball.
InnovationSports
Meet the soccer-playing humanoid robot that just delivered the game ball at the Brazil v. Norway FIFA World Cup match
By Catherina GioinoJuly 5, 2026
6 hours ago
Alibaba gets reprieve on lobbying ban tied to DoD blacklist
LawChina
Alibaba gets reprieve on lobbying ban tied to DoD blacklist
By Kate O'Keeffe and BloombergJuly 5, 2026
7 hours ago
The stock market is about to suffer a ‘snapback’ and will lose much of this year’s gains as ‘speculation is hitting extreme levels,’ BofA warns
InvestingS&P 500
The stock market is about to suffer a ‘snapback’ and will lose much of this year’s gains as ‘speculation is hitting extreme levels,’ BofA warns
By Jason MaJuly 5, 2026
8 hours ago
Nvidia supplier Hon Hai’s sales beat on continued AI demand
AsiaServers
Nvidia supplier Hon Hai’s sales beat on continued AI demand
By Debby Wu and BloombergJuly 5, 2026
9 hours ago
SK Hynix seeks access to AI investors in $29 billion U.S. listing
InvestingChips
SK Hynix seeks access to AI investors in $29 billion U.S. listing
By Bailey Lipschultz, Jeran Wittenstein, Yiqin Shen and BloombergJuly 5, 2026
10 hours ago

Most Popular

Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
Success
Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
By Preston ForeJuly 4, 2026
2 days ago
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
Law
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
By Wyatte Grantham-Philips and The Associated PressJuly 2, 2026
3 days ago
Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
AI
Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
By Marco Quiroz-GutierrezJuly 5, 2026
14 hours ago
Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
AI
Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
By Nick LichtenbergJuly 3, 2026
3 days ago
The stock market is about to suffer a 'snapback' and will lose much of this year's gains as 'speculation is hitting extreme levels,' BofA warns
Investing
The stock market is about to suffer a 'snapback' and will lose much of this year's gains as 'speculation is hitting extreme levels,' BofA warns
By Jason MaJuly 5, 2026
8 hours ago
Mark Zuckerberg takes business calls on a jet ski wearing his $800 Meta glasses—and insists 'the other person could not tell'
Big Tech
Mark Zuckerberg takes business calls on a jet ski wearing his $800 Meta glasses—and insists 'the other person could not tell'
By Sydney LakeJuly 5, 2026
15 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.