Port of Oakland Report to CBFANC Annual Meeting

Andrew Hwang, Port of Oakland

In response Andrew advised that he expects carrier to return to Oakland in late January or February.  Meanwhile, there will be lots of skips while carriers try to get schedules back to normal.  Everything is predicated on what’s happening in LA.  Globally, there are no more ships to be added to the seas, even small vessels are all booked up (under charter, for example). A basic challenge in dealing with transparency is the reluctance by carrier to share information (this is a problem with terminals and truckers, too).
Crippling delays in LA/LB offer opportunities for Oakland, it becomes a much more attractive, viable alternative and asset in the long term.  Long dwell times in LA/LB are sparking big interest in importers choosing Oakland and the transload cargo via truck down to LA.  This is starting to happen with carriers CMA, Wan Hai, Matson. Another draw is that rates are slightly lower to Oakland right now.  Cargo flows like water, it flows in the direction of least resistance.  If a “flood” of containers hits Oakland, will Oakland then develop the same problems at LA/LB?  We hope that there will be a measured and planned increase rather than a flood.
 
Omicron is now a concern and this new variant will influence consumer buying habits (continuing to buy goods on line rather than engage services outside the home such as movies, travel, etc).  Also, ILWU contract negotiations could prompt more shippers to try to get more cargo into USA ports before the labor contract expires—leading to even more congestion.
The massive Infrastructure Bill recently passed by Congress will benefit the port of Oakland.  The port has started putting together proposals for infrastructure projects.  However, even though the money is available, it could be years before any projects will start (taking into account CEQA, lawsuits and other delays).
 The port has four strategic iniatives.  First, the establishment of “Express Service” with departures directly to Asia, and short haul rail services to the inland valley, or Reno, etc.  Secondly, Diversity of Services, to include bulk cargo services, RoRo and expanded intermodal capabilities in addition to existing containerized cargo.  Thirdly, Environmentally Conscious Upgrades, such as electronic trucks, hybrid RTGs, and a truck management plan.  Finally, Seaport Logistics Complex, to offer cross doc and distribution center services, as well as grain transloads.
 The port is also engaged in a land use study, regarding parking, and other uses of port land.  Consideration is being given to the Inner Harbor Turning Basin, which should be enlarged by 2029.  Focus is being given to coordination of truck and railroad operations. Finally, they are working on an Outer Harbor Terminal upgrade that will include larger cranes and reinforced/stronger piers capable of handling cargo of the bigger ships.