While short-term volume fluctuations are a fact of life at West Coast ports, our industry must prepare for long-term growth. The decisions we make now will determine whether our ports remain leading gateways for global commerce.
Today, the ports of Los Angeles and Long Beach are the anchors of the West Coast, handling nearly 40% of Asian containerized imports. Yet they have also experienced a coastwide market share decline of approximately 20 percentage points over the past decade, according to maritime economist John Martin. A 2021 World Bank/S&P Performance Index ranked these two ports last globally — 369th and 370th.
The stakes are high to strengthen their position. Despite their challenges, these two ports contributed more than $791 billion to California’s economy, or 23.5% of the state’s GDP, in 2021. They support hundreds of thousands of jobs across the regional supply chain, and millions of jobs nationwide.
To rebuild confidence, win back cargo and drive sustained job growth, it is vital to demonstrate predictable costs, stable operations and respect for the collective bargaining agreement that underpins West Coast port operations. The contract delivers world-class wages, benefits and pensions for longshore workers. It also guides the introduction of modern systems to boost terminal performance.
Political challenges to the collective bargaining agreement threaten billions of dollars in planned investments to modernize terminals. These impending investments depend on confidence in the West Coast’s future; any political, regulatory or labor uncertainty risks diverting future capital expenditures and related cargo growth to other regions in North America.
We know that modern terminals are proven engines for economic development. Since clear and direct modernization provisions were added to the collective bargaining agreement nearly two decades ago, longshore employment, total wages and average wages have all grown. New technologies have also improved efficiency and cargo throughput.
With smart investment and collaborative leadership among industry, labor and government, we can build 21st century ports that are the envy of the world, driving job, business and economic growth for generations to come.