Ports/West Coast Waterfront Coalition
The West Coast Waterfront Coalition is a group of concerned business interests committed to educating public and government officials about the importance of West Coast ports to America's manufacturing, agricultural and consumer product industries, and to promoting the most efficient and technologically advanced ports for the 21st century. The California Chamber of Commerce is a member of this coalition.
Consider these facts about the contribution of America’s west coast ports:
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Seaports from Washington to California handled $300 billion of waterborne commerce in 2000. The amount of trade translates to more than seven percent of the U.S. GDP.
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Containerized cargo moving through west coast ports supports more than three million American jobs. In today’s global economy, U.S. manufacturers and their workers rely on just-in-time delivery of parts that come from all over the world. These companies depend on reliable and fast port service to keep their assembly lines running.
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The exports and imports represented by commerce through the west coast ports are an important element in America’s manufacturing and agricultural bases, and contribute significantly to the American quality of life by providing an unparalleled array of high merchandise at great prices.
Today, America’s ports are not as technologically advanced as they could be. Congestion and aging infrastructure result in delays in the global supply chain that ultimately affect every American consumer and many American workers. Bottlenecks at the port drive up inventory costs and disrupts just-in-time value chains.
The Coalition supports trade and transportation initiatives that will strengthen America’s west coast seaports and the many businesses that rely upon them.
The Coast Guard has announced that it will mandate all California ports create a security plan to submit to the Coast Guard for approval.
On January 18, 2002 US Customs Commissioner Bonner announced a plan outlining "Four Key Elements of Container Security Strategy." The elements are to: establish security criteria for identifying high-risk containers; prescreen containers before they are shipped to the US; use existing technology to prescreen; and to use technology such as electronic seals or sensors to develop smart and secure containers. In addition, Customs released C-TPAT, the Customs Trade Partnership Against Terrorism, to work with the private sector to combat potential security threats through the tightening of supply chains. (Only "low risk" importers may participate in this partnership).
In April 2002, the U.S. Customs Services actually launched the Customs-Trade Partnership Against Terrorism. While C-TPAT is a voluntary program, it will raise the legal standard of care for all importers. According to Customs, “By participating in C-TPAT, companies will ensure a more secure supply chain for their employees, suppliers, and customers. Besides giving their cargo faster processing at the border, Customs will offer additional potential benefits to C-TPAT members, including: dedicated commercial lanes where infrastructure permits, assigned Customs point of contact (account manager), eligibility for account-based processes (bimonthly/monthly payments), and reduced inspections. Businesses must apply to participate in C-TPAT. C-TPAT membership is available to importers, carriers, brokers, warehouse operators, and manufacturers.”
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The Port and Maritime Security Act passed the Senate by a voice vote on December 20, 2001. S. 1214 by Senator Fritz Hollings (D-SC) directs the Secretary of Transportation to establish a Port Security Task Force to: 1) coordinate programs to enhance the security and safety of US seaports; 2) coordinate the security operations of local seaport security committees; and 3) consult with the Coast Guard and the Maritime Administration in establishing port security guidance. The bill also authorizes appropriations.
A companion version to S. 1214 was introduced December 6th, 2001 in the House as HR 3437 by Rep. Clay Shaw (R-FL) and 15 cosponsors. This legislation involves a complex supply and transportation chain involving the point of production, containers, terminals, ports and related rail system. It also involves the Department of Transportation, Maritime Administration, Coast Guard and various customs issues.
HR 3983 — the Maritime Transportation Antiterrorism Act of 2002 — requires the Coast Guard to assess the security in local and in certain foreign ports, to deny entry to vessels from ports that do not maintain effective security, to develop a system to analyze shipping container information for antiterrorism purposes, to grant credential to workers in sensitive port areas, to authorize annual grants for enhanced facility security at U.S. ports for the next three fiscal years, and to provide other important security enhancements concerning crew and passenger manifests, Coast Guard sea marshals, and vessel transponders.
Concurrently on the west coast, the three-year contract between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) expired in July 2002. These groups were asked for early negotiations to avoid any possible disruptions. There is a long standing debate between labor and management over issues such as information technology improvements that will create a seamless stream of information about cargo, as well as jurisdictional issues of importance to the union.
Chamber Backs President’s Action on West Coast Port Dispute of 2002
Given the critical role of the West Coast ports in the economic health of both California and the nation, the California Chamber voiced its support of President Bush's the President’s recent action to resolve the dispute.
The President asked the U.S. Attorney General to seek an injunction from the federal district court in San Francisco so that the ports would be reopened and would resume work at a normal pace for 80 days while the Pacific Maritime Association and International Longshore and Warehouse Union continue to negotiate the terms of a new labor contract.
The injunction was granted and the ports resumed operating on October 9, 2002.
The Chamber believes smooth functioning of the West Coast waterfront is crucial to the economic health of the entire nation, as well as national security interests.
In addition, the port closures greatly hampered California’s manufacturing and agricultural industries. While agriculture continued to export goods to Canada and Mexico, its exporting ability to Asia and Europe was blocked while produce remained at the ports waiting to be shipped. Manufacturers also experienced a slowdown in shipments of materials necessary for production.
While it is important that negotiations take place, the Chamber believes it is crucial that the ports operate at full capacity to guarantee California’s economy is not negatively affected.
For further information and to stay up-to-date on the ongoing negotiations, visit the Pacific Maritime Association’s website at www.pmanet.org.
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