Pacific Maritime Association

PACIFIC MARITIME ASSOCIATION 15 6.1% between 2010 and 2023. Meanwhile, Canadian intermodal rail traffic grew at a compound annual rate of 7.7% over that span, suggesting that it was often faster and cheaper to ship Asian cargo to Chicago via Vancouver or Prince Rupert than Seattle or Tacoma. Honoring the Coastwise Contract The contract reached between the ILWU and PMA in 2023 is a blueprint for stability through 2028 and provides the foundation to regain market share. With eyes on Los Angeles in the wake of the wildfires, plus the arrival of the FIFA World Cup 26 TM , Super Bowl LXI in 2027, and the Olympic Games in 2028, the role of the Ports of Los Angeles and Long Beach in supporting the supply chain is crucial. The key will be ensuring that the collective bargaining agreement is honored, and that PMA and the ILWU work within its provisions to resolve disputes. Attempts to boost required manning levels through legislation or engaging in outside activities designed to sidetrack automation undermine the collective bargaining process and send a deeply concerning message about West Coast ports to the global shipping community. "We have a real opportunity to build back our business," PMA President and CEO Hennessey said. "Rebuilding confidence in our reliability is essential to sustaining our growth and supporting opportunities for ILWU members and the millions of workers and small businesses that rely on our ports." an estimated 42% of all containerized Asian cargo handled at the Ports of Los Angeles and Long Beach in 2023. Dr. Martin's model shows that each one percentage point decline of discretionary cargo equates to a reduction of 6,800+ direct, induced, and indirect jobs, $700 million annually in lost wages and personal consumption, and $15.6 billion in total economic impact to California. The most vulnerable direct jobs include truckers and workers in distribution centers and warehouses. And the majority of the direct, induced, and indirect impacts occur in the San Pedro Bay regional economy. Canada Challenges Pacific Northwest Ports East Coast and Gulf Coast ports aren't the only competitive threat. Though Pacific Northwest ports handle far less volume than the San Pedro Bay complex, their market share losses have been even steeper, pointing to growing competition from up the coast in Canada. Between 2002 and 2023, the Pacific Northwest's share of containerized cargo from Asia plummeted by more than half, from 16% to 7.5%, according to Dr. Martin. His data underscores the importance of improving efficiency and lowering costs throughout the supply chain, not just at the ports. For example, international intermodal rail traffic from Washington and Oregon ports to the Midwest fell by a compound annual rate of BNSF and Pacific Harbor Line locomotives haul cargo at the San Pedro Bay Port Complex. 2 0 2 4 | A Y E A R I N R E V I E W

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