Page Hosted by the California Chamber of Commerce for the CalTrade Coalition

Trade Economy, Jobs Still on the Decline

The California Trade Coalition continues to press for actions necessary to protect California’s trade competitiveness and premier gateways for trade, including:

• Balancing California's regulatory environment so it is reasonable, fair and workable to support California’s continued trade competitiveness; and
• Promoting public-private partnerships and immediate investment in trade-supporting infrastructure.

“It's impossible to overstate how important  transportation and trade are to our region. Ports mean trade, and trade means jobs.”

Long Beach Press-Telegram, 07/17/10
By Assemblymember Furutani, 55th District

**  ***  **

“... peak season for containerized imports may have topped out in July as retailers shipped early to avoid delays ...”

The Journal of Commerce Online - News Story, 08/05/10

**  ***  **

“Southern California's ports recognized a trucking company, a scrap recycler, a marine terminal operator, a tugboat company and a port pilot service this week for taking extraordinary steps to reduce pollution. ”

The Journal of Commerce Online - News Story, 07/30/10

**  ***  **

“... And while exports, buoyed by strong overseas demand and a depressed dollar, have exceeded imports in growth percentage-wise this year, the outlook for the second half of 2010 is growing more bleak by the day, according to several trade experts. ”

Long Beach Press-Telegram, 07/17/10

**  ***  **

2009’s Trade Numbers Only Continue to Get Worse

“The current downturn has so badly battered shipping that it makes the auto industry look healthy by comparison.”
The New York Times, 05/13/09

From peak employment in 2006, hours worked on the docks in California have already dropped by about 30 percent at our state’s largest container ports.

---

Rates Continue to Plummet for Companies Doing Business in California’s Ports

The shipping industry is suffering as container volumes continue to plummet, and the entire containerized trade has taken a hit.  As a result, The New York Times noted that shipping’s downturn is worse than the hard-luck of the Big 3 in Detroit. 

One key benchmark that measures the health of trade are  trans-pacific spot rates.  Unfortunately, due to a drop in demand, these rates have tumbled 50 percent this year. 

Not only are these depressed rates indicative of the lower demand sweeping through the international supply chain, but they make it harder for California’s ports and shippers to compete with other ports in other states. Simply put, while California’s ports were in heavier demand, we had more jobs, more opportunities to invest in new infrastructure and the financial capacity to continue our work to improve the environment.  Now, with rates and volumes decreasing, we have fewer jobs and fewer resources at our disposal to invest in our trade corridors and to reduce emissions.

---

Investment in California’s Gateway Ports Is Key for State’s Economic Recovery and Environmental Improvement

Right now, California’s trade gateways are being challenged by more competitive ports located in Canada, Mexico, the Gulf Coast and Atlantic Seaboard — with no indication that our competitiveness will improve when the economy turns around. 

Given our current economic challenges in delivering its economic recovery strategy, California has reached a critical juncture. The California Association of Port Authorities, International Longshore and Warehouse Union and the Pacific Merchant Shipping Association have worked together to request from state leaders that every effort be made to:

• Invest in California’s maritime and international trade infrastructure;
• Preserve the competitiveness of our public seaports;
• Grow jobs and cargo volumes on the waterfront;
• Help stabilize and improve our state and national economies through strategic trade-related policies.

---

Read the letter to Governor Arnold Schwarzenegger, Assembly Speaker Karen Bass and Senate President Pro Tem Darrell Steinberg

The resources that will help us achieve these goals exist now. The recently passed federal stimulus package provides the opportunity for much-needed investments in our ports and surrounding trade-supporting infrastructure. In addition, these federal funds can be used to match and leverage the state’s own commitment to building trade infrastructure with bond dollars approved by the voters in 2006, but not yet spent.

---

Cargo Leaving California

Other states gaining cargo as it leaves California

Given our current economic challenges and the state's fiscal situation, California's trade gateways and jobs should be helping to play an increasingly critical role in shaping our state's recovery.

But instead, our ports are losing volumes, jobs and economic activity, while ports from Canada to Mexico to the Gulf and even the East Coast are growing. Ports are becoming increasingly aggressive and competitive — investing and winning trade gateway market share at California's expense.

Decline of California's Premier Gateways for Trade Threatens
State's Economic Recovery

CALL FOR ACTION

The immediate actions necessary to protect California's competitiveness:

• Balance California's regulatory environment so it is reasonable, fair and workable in light of port competitiveness issues.
• Promote public-private partnerships and immediate investment in trade-supporting infrastructure.
• Stop the damaging debate over state-imposed container fees and taxes.

We encourage policymakers to work with the California Trade Coalition, a collection of port- and freight-related industries, and call on state leaders to re-establish California's position as the country's premier gateway for international trade.

See the latest CalTrade statement on California's trade competitiveness.