Importers' concerns lead to Christmas in July.Sparked by concerns over understaffed railroad lines, the possibility of sporadic sporadic /spo·rad·ic/ (spo-rad´ic) occurring singly; widely scattered; not epidemic or endemic. spo·rad·ic or spo·rad·i·cal adj. 1. Occurring at irregular intervals. 2. trucker strikes and a significant increase in demand for consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and , importers have kicked off their peak shipping season two months early. Imports aimed at Halloween, Thanksgiving and Christmas sales have already begun to hit West Coast ports in what retailers and economists believe will be the busiest summer in years. "Peak season has already started because sales in the retail industry are very strong this year," said Robin Lanier, executive director of the Waterfront Coalition, a retailer trade group. "We're in an economic recovery. Most people are expecting a pretty big season." About 43 percent of all of the nation's maritime cargo comes through the Los Angeles/Long Beach port complex, with most of the local trade coming from Asia. Evidence of a national recovery was already apparent in April, when container traffic increased by 10 percent at the Long Beach port and 4.7 percent in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. compared with respective year-ago monthly periods. "It's not just the low-cost Christmas items that used to come in," said Jill Morgan, director of maritime services at the Long Beach port. "We're seeing everything now--back-to-school stuff, Halloween stuff, any of the seasonal items. More and more of the daily products you use are being manufactured in China." The ports' major imports include clothing, electronics, furniture, medical equipment, shoes, toys and automobiles. Besides an improving economy, much of the cargo is being ordered, produced and shipped early so importers can avoid potentially costly delays in the supply chain later this summer. The biggest hurdle will be staffing shortages at Union Pacific Railroad Union Pacific Railroad, transportation company chartered (1862) by Congress to build part of the nation's first transcontinental railroad line. Under terms of the Pacific Railroads Act, the Union Pacific was authorized to build a line westward from Omaha, Nebr. Co. and Burlington Northern & Santa Fe Railroad Santa Fe Railroad, former U.S. railroad, chartered in 1863 as the Atchison, Topeka, and Santa Fe RR; opened to traffic in 1864. Construction continued, and in 1880 it reached Santa Fe, N.Mex.; the following year the railroad connected with the Southern Pacific RR. Co., which transport 37 percent of the $200 billion-plus worth of cargo handled at the ports annually. For more than a year, shippers relying on just-in-time delivery systems have seen their Midwest-bound cargo delayed by at least a day. The lack of manpower arose from a 2002 ruling by the federal Railroad Retirement Board The Railroad Retirement Board (or RRB) is an agency of the United States government created in the 1930s which established a retirement benefit program for the country's railroad workers. The RRB serves U.S. that allowed employees with 30 years' experience to retire with full benefits at age 60, or two years younger than the previous benchmark. More employees took advantage of the offer than expected, creating thousands of openings that the railroad companies hope to fill by the end of the year. Union Pacific plans to hire 4,300 new people this year and add 2,200 to 2,400 more annually for the next four or five years. Meanwhile, the staff shortage has forced the company to prioritize pri·or·i·tize v. pri·or·i·tized, pri·or·i·tiz·ing, pri·or·i·tiz·es Usage Problem v.tr. To arrange or deal with in order of importance. v.intr. shipments. "We think it's going to be a long time where we get to the point where we want to be with staff," said John Bromley, a Union Pacific spokesman. "The effects have resulted in delays and not getting cars to customers as fast as they request them. They are not happy." Port truckers have also created problems with sporadic work stoppages and rallies at West Coast ports, including L.A. and Long Beach, to protest rising diesel prices. However, railroads are a bigger concern than trucks, said Lanier. "Most of the (retailers) I talk to are folks that are in control of their own drayage Drayage A trucking company freight charge for the pick up or delivery of an ocean container. ," she said. Importers can placate pla·cate tr.v. pla·cat·ed, pla·cat·ing, pla·cates To allay the anger of, especially by making concessions; appease. See Synonyms at pacify. truckers by paying them an increased surcharge An overcharge or additional cost. A surcharge is an added liability imposed on something that is already due, such as a tax on tax. It also refers to the penalty a court can impose on a fiduciary for breaching a duty. to compensate for the additional fuel costs, if needed. The importers, or the logistics companies they hire, are currently giving truckers an average surcharge of 5 percent to 6 percent of the overall hauling costs, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the California Trucking Association. Still, the truckers complain they are losing money. Some importers, such as Torrance-based Toyota Motor Sales USA Inc., have been using several ports all along for both logistics reasons, such as imports from Europe and Brazil, as well as insurance in the event the L.A. and Long Beach ports close down for any reason. "We have a vulnerable system," said Tony Minyon, national manager of parts logistics for Toyota Motor Sales. "Anything could happen and they could be (closed) for a significant amount of time." |
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