Port Condition Zulu

By Jock O’Connell

Readers of the maritime industry press might be forgiven for concluding that U.S. West Coast ports are fundamentally unreliable conduits for trade. Monthly statistics indicating a declining share of the transpacific container trade typically prompt a surfeit of articles attributing these figures to logistical inefficiencies and the generally higher costs of doing business in America’s West Coast states. Even when imports surge through USWC ports (as they have been doing lately), the maritime media will bemoan longer turn times, chassis shortages, overfilled and understaffed warehouses, and spotty rail transport connections.

Editorialists consistently criticize the International Longshore and Warehouse Union (ILWU). For example, a letter from the union’s president to California’s Governor and Legislature about automation during upcoming contract negotiations sparked warnings of potential labor troubles. Even strikes in Montreal are used to criticize the ILWU, despite the Montreal action being initiated by a clerical union affiliated with the International Longshoremen’s Association, known for its own rigid stance on automation.

According to maritime media, East and Gulf Coast ports are preferred for shipments bound for markets east of the Rockies. However, there is a critical factor often overlooked: natural disasters.

As of August 23, the National Hurricane Center (NHC) is tracking two major storms, Laura and Marco, heading towards the U.S. Gulf Coast. Laura, currently a Tropical Storm, is expected to become a hurricane by landfall. Marco, already a hurricane, is expected to make landfall tonight. The NHC warns that having two hurricanes in the Gulf in the same week is unprecedented and could cause unparalleled damage, particularly in Louisiana and Texas.

The 2020 hurricane season has been exceptionally dangerous, with 14 named storms already this year and forecasts predicting up to 25 named storms, with up to six potentially becoming major hurricanes. Earlier this summer, hurricanes Hanna and Isaias made landfall, prompting the U.S. Coast Guard to implement Port Condition Zulu at East Coast ports from Miami to Wilmington, North Carolina. This condition halts port operations, closes terminals, and requires all oceangoing vessels over 500 GT to depart unless authorized.

Hurricanes can disrupt port operations more severely than labor stoppages. They cause significant damage to infrastructure, leading to substantial collateral damage. The peak hurricane season coincides with the peak shipping season, and with predictions of increasingly frequent and severe storms, this problem will likely worsen.

While USWC ports are not immune to weather issues, such as the 2014 Pacific hurricane that damaged the San Pedro Bay breakwater or the 2017 heatwave affecting operations, the West Coast has historically experienced fewer disruptions from heavy weather compared to East and Gulf Coast ports. The last recorded hurricane on the U.S. West Coast was in 1858, a stark contrast to the frequent and disruptive storms impacting other regions.

Thus, while there may be valid reasons for shippers to divert cargoes away from West Coast ports, heavy weather is not typically one of them. USWC ports have generally lost fewer operational days to weather-related disruptions compared to their East and Gulf Coast counterparts.

Disclaimer: The views expressed in Jock’s commentaries are his own and may not reflect the positions of the Pacific Merchant Shipping Association.