East & Gulf Coast Port Union Contract Negotiations Suspended Ahead of January Deadline
Union Leaders of the East and Gulf Coast Ports broke off master contract negotiations again on Nov 13 after having resumed negotiations with employers for two days following a brief three-day strike at the Ports on Oct 4. The ILA (International Longshoreman’s Assoc.), representing 45,000 members, and the USMX (U.S. Maritime Alliance), representing U.S. East & Gulf Coast Ports, had agreed to end the strike after a provisional agreement was reached on a wage hike of around 62% over a new six-year contract and an agreement to extend the existing master contract 90 days to January 15, 2025, to negotiate outstanding issues, including automation. A strike at East & Gulf Coast Ports could occur again if an agreement is not reached by January 15. Meanwhile, shippers continue to divert cargo to the West Coast Ports in anticipation of a possible strike in the East, which have experienced record volumes in recent months.
In another matter, union members at top Canadian Ports were ordered back to work by the Canada Industrial Relations Board on Nov. 12 after a week-long strike and employer lockout at the Canadian Ports of Vancouver, Montreal, and Prince Rupert. The Government Action imposes final and binding arbitration on the labor dispute, which had been in negotiations for nearly 2 years. Read more at Maritime Executive East & Gulf Coast Ports and Canada Ports.
CA Environmental Rules Requiring EPA Waivers in Potential Jeopardy under New President
The election of President Trump and a Republican-led Congress may affect the outcome of several outstanding California environmental rules, which require waivers by the U.S. Environmental Protection Agency (EPA) to take effect in CA. The rules currently pending EPA approval include the “In-Use Locomotive” rule affecting CA trains, the “Advanced Clean Fleets” rule affecting CA trucks, including requiring 100% zero-emission Port drayage trucks by 2035, and the “transport refrigeration units” rule, affecting CA truck refrigeration units. If the CA rules achieve EPA waivers before the new Administration takes office on January 20, 2025, the new Congress may still scrutinize the new rules under the Congressional Review Act. Read more at LA Times and Fleet Owner.
SoCal Ports Receive Federal Grants for Zero-Emissions Programs and Port Security
The Port of Los Angeles (POLA) was awarded a $412 million grant from the U.S. Environmental Protection Agency (EPA) Clean Ports Program for the Port’s Zero-Emissions Initiatives. Funded by the Inflation Reduction Act, the EPA grant will be matched by the Port and Marine Terminals with an additional $236 million for a total new investment of $644 million. The grant will fund zero-emission equipment and infrastructure, including battery-electric cargo handling equipment, zero-emission drayage trucks, and charging stations.
The Port of Long Beach (POLB) was awarded more than $2.6 million from the U.S. Dept. of Homeland Security (DHS) Port Security Grant Program to improve Port security. The DHS also awarded $4.2 million to six Terminals within the Port as well as the Port Police Division and the Long Beach Fire Dept. The funds will be used to protect critical infrastructure, including cybersecurity, drone detection capabilities, and upgrades to the network infrastructure. Read more at POLA and POLB.
Kuehne + Nagel to Acquire Majority Stake in Top Drayage Carrier IMC Logistics
Kuehne + Nagel (K+N), a top global freight forwarder, announced the acquisition of a majority stake in IMC Logistics, the largest marine drayage provider in the nation. IMC’s national network includes 49 locations with a strategic presence at major U.S. seaports and railroad transportation hubs. With annual revenues of around $800 million in 2023 and 1,700 employees, the company handles 2 million TEUs (twenty-foot equivalent units) annually in drayage operations with an extensive network of independent contractors. K+N, headquartered in Switzerland, has over 80,000 employees at almost 1,300 sites in nearly 100 countries. Stefan Paul, K+N CEO, stated: “IMC’s range of capabilities significantly expands our service offering and allows us to develop even more attractive solutions for the value chains of our sea freight customers.” The details of the transaction were not disclosed. The deal is expected to be complete in the first quarter of 2025 and is subject to approval from regulatory authorities. Read more at AJOT.
DHL Tests the Tesla Semi Class 8 Battery-Electric Truck Under Real-World Conditions
DHL announced it had completed a test of the new Tesla “Semi” Class 8 Battery Electric Class 8 Truck under real-world conditions and was “encouraged by its performance, comfort and efficiency.” The trial, performed in Livermore, CA, included 3,000 miles of regular operational routes and a fully loaded long haul of 390 miles. The Tesla Semi test exceeded expectations by traveling up to 500 miles on a single charge, averaging 1.72 kWh per mile – surpassing Tesla’s rating. The trial is part of DHL’s commitment to decarbonize its fleet, with aims to electrify over 66% of its last-mile delivery vehicles by 2030. DHL plans to integrate the Tesla Semi into its U.S. operations as Tesla ramps production. Tesla has faced delays in production due to battery shortages since it was first introduced in 2016. Tesla is building a factory in Nevada with plans to begin large-scale production in 2026, producing 50,000 units annually. Read more at Supply Chain 24/7.
Perris Gateway Project Breaks Ground in CA Inland Empire East
Real Estate Development firm DECA broke ground on a new 855,330 SF Cross Dock Facility in Perris, CA, in the Inland Empire East, 73 miles from the SoCal Ports. Situated on over 42 acres adjacent to the I-215 Freeway, the “Perris Gateway” project will feature a fully entitled, speculative omnichannel fulfillment center with 40-foot clear heights, 124 dock-high doors, 308 trailer stalls, and 348 auto parking stalls. Travis Duncan, VP of Development for Deca, stated: “We’re thrilled to be starting construction on Perris Gateway. With grading on the industrial project having commenced, we’re enabling 1,200 construction jobs and over 800 permanent jobs when the building is fully operational next summer.” Read more at AJOT.
Amazon Launches Small Package Drone Delivery Service in Phoenix Area
Amazon has launched a drone delivery service to the Phoenix Metro Area from its Tolleson, AZ, Same-Day Delivery facility. Approved by the Federal Aviation Administration to fly beyond visual line of sight, the Amazon Prime Air drone delivery service provides air delivery to households of more than 50,000 items weighing 5 pounds or less in under an hour for a service fee. Current drone delivery operations are limited to one item per delivery during daylight hours in favorable weather conditions only. Read more at Supply Chain Dive and Amazon.