Following a $27 million grant from the California Office of Business and Economic Development the operators of five West Coast ports have signed a memorandum of understanding to cooperate on enhancing efficiency.  The ports of Los Angeles, Long Beach, San Diego, Oakland and Hueneme will cooperate in developing and using computerized and cloud-based data and interoperability to improve freight system resilience, movement of goods, reduction of emissions and economic competitiveness.

Gene Seroka Director of the Port of Los Angeles stated, “Data was essential to navigating supply chain disruption during COVID with analytics allowing us to see around corners which is a competitive advantage and a public necessity.”  Mario Cordero Executive Director of the Port of Long Beach noted, “Sharing vital shipping data will reduce delays and add the entire group’s movement of consignments from docks to doorsteps. By working together California’s ports can enable end-to-end visibility and connectivity across the supply chain”.

Concerns among importers and exporters include inefficiencies through West Coast ports and uncertainties over future operation since the ports are functioning without a contract agreement with labor unions.  Importers have proactively moved freight to Gulf and East Cost ports that have invested recently in new berths, handling facilities, refrigerated warehouses and links to road and rail transport.  It will take more than a memorandum of understanding and grants to enhance computer programs to attract more volume through the five ports responsible for a major but declining proportion of imports. Losers in the impasse between unions and port operators are farmers and integrators on the Western seaboard who have suffered from unavailability of containers and indifferent service, restricting exports to markets in Asia.