Port Technology reprinted this article on August 26th that had appeared on Going Places.

“Panama Canal to Hit US West Coast?”

“Los Angeles and Long Beach ports have long been in a primary position to receive goods from South America and Asia,” the article began. “However, arguments have surfaced stating that these ports must upgrade if they are not to be by-passed after the opening of the Panama Canal expansion.

“According to California’s Orange County Register, Democrat Janice Hahn of San Pedro recently introduced a bill aimed at funding significant upgrades that she says will help LA and Long Beach cling on to their competitive edge.

“‘When I came to Congress three years ago, my big focus was on the ports,’ Hahn said. ‘I felt there was a need for a larger funding stream for the National Freight Network – even the president called for a US $ 2.5 billion funding over four years for it. So I thought in my mind this is the right time to do (the bill).’

“Hahn intends to redistribute 5% of import fees collected at US borders and translate the levy into funds for the ports.

“It is anticipated that this could bring in around $ 650 million for the ports annually.

“The Orange County Register ragues that this income would subsidize rail and roadway improvements that would increase the efficiency when dealing with the 15 million TEU yearly through-put at the port.

“This could in turn mean LA and Long Beach are still more attractive options for shippers when deciding whether to utilize the southern and eastern US ports which will be reachable to post-Panamax vessels after the opening of the canal.

“The Panama Canal Expansion is set to be completed by December, 2015.” —

Mrs. Hahn in the past has always been concerned about the difficulties generated by incoming containers. In our Vol. II, Art. 18 commentary (“Truck Driver’s Blues” – Feb. 11, 2005), we quoted her as saying: “Today, about 12 million containers are passing through our port complex every year. And that number is expected to triple in the next 20 years. The international trade is booming and we must do something to prepare for this growth. Highways in Southern California are already gridlocked and congestion will continue to worsen, unless we do something now … It is my belief that congestion at our port complex, and on our roads and highways, is the one thing that will drive business out of California.”

She went on to say that she wanted “… to bring another important issue regarding goods movement to your attention. And that is the plight of the independent trucker. These truckers are a vital link in the goods movement supply chain for this entire country. 40% of all our nation’s goods come through our port complex, and without these truckers, our entire economy would be crippled. Independent truckers are working unbelievable hours and barely making enough to feed their families … I stand before you today to send a message that if we, as leaders, do not do something to improve the working conditions for our independent truckers, we could face a meltdown in goods movement statewide.”

On the following May 20th, in our Vol. III, Art. 19 commentary (“You Get What You Pay For”), we quoted Mrs. Hahn again: “This growth puts the fear of God into those of us who realize the infrastructure isn’t ready to handle that. If this growth triples in 10 years, we’ll be right back where we are today … The public pressure has changed. The public will not put up any longer with congested freeways and congested streets … The trucking industry is sending up red flags. I think we’ll have a meltdown if we don’t relieve the plight of the independent truckers.”

Just prior to her May 20th warning, in our Vol. III, Art. 11 commentary (“It Does Not Follow”), we conceded that Mrs. Hahn was right, and we asked:

“Why is it that with all the difficulties that have surfaced and are blooming in the LA/Long Beach port complex, the only attempts being made to counter these difficulties are being directed at truckers? The real causes within and around the ports are being deferred because no one knows how to deal with the seemingly inevitable and imminent supply chain gridlock. Would these repeated assaults against the drivers be made if these drivers were organized? You know darned well they wouldn’t. The drivers are an easy and defenseless target … and any action against this easy target will appear to the public as though officials are … what? Looking busy?”

Since we wrote about what concerned Mrs. Hahn back in 2005, a funny thing happened on the way to the forum. The Great Recession, the inevitable result of widespread joblessness.

Joblessness – the unemployment crisis – has done away with the paychecks of millions and millions of erstwhile shoppers in this country, and around the world as well, and all those doubled and tripled volumes of incoming containers never materialized. And unless our elected, and appointed stalwarts find a way to create about 40 million jobs, those dreamed of volumes will never make an appearance.

Supply and demand is what supports an economy. No paychecks = no demand = no supply. Those touting the Panama Canal expansion expect us to believe that this expanded waterway will now bring giant container ships to U.S. ports, and so billions of taxpayer dollars, they insist, must now be spent on “upgrading” our ports and “infrastructure.” And if we don’t accommodate those “economy-of-scale” leviathans, they warn, those carriers will just bring all those containerized goods elsewhere.
What a hoax. “Elsewhere” doesn’t have the money to pay for those containerized goods, either, so the billions to be spent for “upgrading” is just another way to scam, and skim, taxpayer funds.

There will be a day of reckoning.