The feedback on the last couple of newsletters is that they were a bit grouchy. Thank you for being kind loyal readers, but they were likely more than a “bit” grouchy.

It seems our industry is flooded with bad news, so this newsletter, we will knock out the grouchy news here and leave the rest of the newsletter for more lighthearted and upbeat fare.

Here’s the grouchy:

The COVID lockdowns in Shanghai began a month ago. Hundreds of ships are at anchor. Thousands of orders sit awaiting production and shipment. When it breaks loose, it is going to put additional strain on an already fragile supply chain.

The International Longshore and Warehouse Union (ILWU) contract negotiations have begun. Automation is the biggest negotiation pain point. The management side needs automation to densify terminal operations and handle the growing volumes and larger ships. The labor side sees automation as a threat to its current and future membership. With all eyes on the logistics network, including those at the highest level of the federal government, there is hope the two sides will work through it without labor distributions.

The proposed Oakland A’s stadium, high-rise condominium complex, and retail center at Howard Terminal has enormous opposition from the logistics community, except from the Port of Oakland itself. A coalition of stakeholders has filed a $12B lawsuit claiming the City of Oakland approved an unsound and incomplete environmental impact report (EIR).

Within the baseball world, there are some musings the Oakland A’s are purposefully sabotaging the team by trading star players and significantly increasing ticket prices in an to attempt negatively impacting attendance and pave the way for a move to Las Vegas. Seems to be working. On the same day last month, the first-place A’s drew 2,703 in attendance, while the minor league team in Las Vegas drew 5,174.

Export cargo is down nearly 26% in Oakland. compared with the same time period last year. Availability of containers, chassis, bookings, vessel space, appointments, adequate receiving windows and ports of call all are playing a hand in the marked decline.

Inflation and fuel prices continue their upward trajectory…enough said there.

To start the lighthearted:

The grouchy baby picture above is Karen Vellutini’s grandson, Sam, when he was six months old.

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