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Harbor Trucking Association President Fred Johring on the impact on U.S. shipping and overall economy from the strike at the Los Angeles and Long Beac...
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While you might not think if you strike the two biggest ports and the country directly impact you but think about this if you've ordered anything lately and we all have -- Christmas or Chanukah gifts.
You may not get them in time more than a dozen ships loaded with cargo.
Are just sitting in the -- in California and had been.
For the past week.
Now both sides reportedly agreed to federal mediation and a strike.
But close to a billion dollars a day is still being lost spreads joining us president of the harbor trucking association and 32 of his 35 truck drivers.
Are out of work as a result of the strike he's also been unable to deliver goods to the business to businesses in his area and spread.
He did you think the federal mediators will be able to resolve this strike.
Our fingers are crossed Melissa this is really important we need to get this thing over quickly.
Fred what isn't that you personally.
Well right it's hard to account for or what the cost of this -- -- And it probably won't be accounted for until after after the strike is over.
When all the ramifications of -- down.
But it's it's always devastating to me personally.
And it's worrisome for me about my employees and my my driver's.
Yet I mean we look at the numbers that are involved here and you know everyone has their estimate they're arguing over -- -- estimates are right but.
What we see is you know one point two million jobs are supported by the ports.
400 billions in goods move through the ports in 2011 so when people say shutting them down.
Is a billion dollars a day or more that sounds like a very reasonable.
Number at the same time it's about.
About 800 members of a clerical union better working.
Related to the -- they make 87000 dollars a year 41 dollars an hour when their benefits are factored in.
They have annual compensation of a 165000.
Dollars a year they are the ones that.
Started to strike because they feel like over time their jobs are gonna disappear as their work is automated the longshoreman.
Join forces with them in support of them.
I mean what do you think about the case that they're making.
Well I'm I'm not gonna take -- side in this in this negotiation.
I have feelings for both sides our goal is to get them together work it out.
And get get us all back to work.
What is it mean to businesses in the area when you aren't delivering the goods on those trucks that mean for example what would you have done in the past couple days that hasn't gotten done.
There's hundreds of containers that are sitting at the harbor that that we haven't delivered I've got manufactured goods that are going to.
A warehouse that distributes them all over the United States is not given their goods they're supply -- there's supply chain has dried up.
You've got consumer goods that are that are certain to hit the shelves a Christmas.
And were the clock is ticking on that is an impact -- sales certainly will.
At the same time your drivers make about 200 dollars a day.
While -- -- not out -- their driving are you still paying them.
No unfortunately I can't pay them we have to we have to lay them off on today's is they're not working.
City of any idea what they're doing instead have they found anything to do or their families just out that 200 dollars a day that they were counting on.
You know sadly they'll come into the office and say you're the first first part of their shift and say.
Are they were part of -- back to work and we go to work today and we.
We've always can do is just shake our head but they're checking in every day with us no they don't have their work -- their job is driving.
What would you say to people on both sides right now -- they were listening and watching the show what would you tell them.
I would I would urge them to -- -- the table and be reasonable be reasonable and your expectations.
We're we're in a down economy.
You've got thousands and thousands of people depending on you to work this out let's get back to work guys let's let's make this economy grow.
Is there something else that could be done in the long run you know it if you know people that are shipping through this -- -- burns.
Is there another option or because some -- made the argument that 40% of cargo that comes into this country moves through this ports in -- matter what.
People are gonna shipped through this lane you know giving the people that are on strike a whole lot of leverage.
Good point.
You know we're always concerned about diversion to other ports we're concerned about diversion to prince Rupert where the US gets no money out of the movement of this goods.
That are common in the United States.
But but still the Southern California areas such a large consuming area it's always going to have a a decent percentage of cargo coming through here.
But the incremental cargo is significant if you if you diverted 10% of the -- away from Los Angeles.
It would be significant in the loss of jobs in Southern California alone.
Yeah Fred thanks so much for coming on the show we appreciate it best of luck -- -- I hope this gets resolved soon.
Thank you very much so here.
