Armada Outside the Twin Ports The traffic jam of 70 ships signals failure of just-in-time delivery By James Preston Allen, Publisher
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tanding at the lookout on South Gaffey Street overlooking the San Pedro Bay, one can see the armada of ships anchored in what has been increasingly called a “log jam” in the global supply chain just outside the federal breakwater to the ports of LA and Long Beach. It has caused alarm and anxiety from the offices of large capitalist importers to union halls of dockworkers and truckers. The supply chain is clogged by the pandemic surge of imports and the infrastructure of both labor and transportation is not adequate to handle the volume. Automation on the terminals has not solved this problem but the international shipping corporations are reaping huge profits as container prices have surged. The ILWU pensioners president, Greg Mitre, noted that APM-
SP Courthouse to be demolished, replaced with apartments p. 2
Oil Terminal Project Highlights Larger Issues Commissioner Diane Middleton challenges staff on leasing policies By Paul Rosenberg, Senior Editor
Homeowner activist Janet Gunter made another attempt to get action on a threat she’s been fighting for decades at the Sept. 22 Harbor Commission meeting. “The city and Port of LA have continued to deny that they have any way to remove or relocate the highly explosive 25 million gallon Rancho butane storage facility,” but that wasn’t true, she argued in her comments on a proposed project to combine the operations of the NuStar and Valero oil terminals (Berths 163 and 164) into a single new wharf structure, with new 30-years leases for both companies. Rancho “serves primarily now as the remote storage location for excess butane gas produced by the Valero refinery located some 8 miles away,” Gunter explained. Thus, “This agenda item offers a unique opportunity to intervene in the interest of public safety, and the protection of the port itself. Valero is seeking the renewal of their lease. Prudent behavior
would mandate that Valero’s renewal is contingent upon the agreement to halt storage at Rancho and find space on their own grounds, or elsewhere.” After public comment, Commissioner Diane Middleton queried Director of Environmental Management Chris Cannon, “Do I correctly understand that item 7 has to do with Berth 163 and ‘64 and that it has no relationship to what Ms. Gunter referred to as the Rancho site?” Cannon confirmed this impression by referencing his initial presentation, when he had quoted from the State Lands Commission website. “MOTEMS stands for Marine Oil Terminal Engineering and Maintenance Standards, and they have established minimum engineering, inspection and maintenance criteria for all marine oil terminals in California. They’re to prevent oil spills and protect public health, safety and the environment,” he’d said. “So that’s what this is about.” In one sense he was right: that was the primary pur-
pose of the project. But the environmental document itself said that 30 year leases for both companies were included in the project — though their details were not spelled out. “A proposed lease will come later,” port spokesman Arley Baker told Random Lengths News. The environmental analysis “required analysis of the lease duration and operations,” he explained. “The proposed lease will require separate action by the board and the city council.” The connection Gunter drew was through those leases — specifically Valero’s lease. And though it might have been premature to take action, commissioners certainly could have sent a message in advance. We know that because Middleton herself later did precisely that. “There are a number of federal, state and other reg-
September 30 - October 13, 2021
Menduina Schneider Gallery brings the world to San Pedro p. 9
[See Supply, p. 15]
Carson candidate Gomez accused of lying in campaign pamphlet p. 5
control for shipping, “this number of ships at anchor and adrift is the most we’ve historically ever had.” He explains that it’s not really a log jam, but a very full parking lot, there’s only enough room for some 61 ships to actually anchor outside the break wall, as the continental shelf drops off steeply to a depth of one mile. The remainder are “adrift” and kept separated by the exchange, which means that the ships have to keep their engines running to maintain position — those at anchor also need to run their auxiliary engines to keep their lights on. This has created environmental concerns because of the emissions generated.
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More than 60 ships sit idle outside the Port of Los Angeles. Photo by Arturo Garcia-Ayala
Maersk’s profits during the first quarter of 2021 are greater than all of what was reported in 2020 at $39 billion. Maersk is not alone, as container-shipping prices have soared over the past 14 months. Maersk is just one of many shipping corporations doing business here, but it’s the world’s largest integrated shipping company with a total capacity of 4.1 million twenty-foot equivalent units, or TEUs. It operates a fleet of 708 vessels including 307 of its own container vessels and 401 chartered container vessels as of December 2019. Currently, four of the 70 ships parked outside the breakwater are APM cargo vessels. According to Capt. James Kip Louttit, executive director of the LA Marine Exchange, the organization that acts like air traffic
[See Oil, p. 2] 1