The Propeller Club occasionally receives requests from industry partners to support various legislation and critical industry related initiatives. We require majority support from the board to sign on to these letters. Here are the letters we have been signatory to in 2024.

• 2024 TCEP - Letter of Support
• ISR Aug 2024 Letter to LA-LB Mayors
• POLA FY24 PIDP Prop Club Letter of Support
• USDOT FHWA - CFI Letter of Support

Honorable Gavin Newsom
Governor
State of California
State Capitol Building
Sacramento, CA 95814

Dear Governor Newsom,

RE: AB 3214 (Limon) oil spills: financial security, fines, and penalties – Veto Request

I am writing on behalf of the Los Angeles & Long Beach Port of The Propeller Club of the United States to register our opposition to Assembly Bill 3214 (Limon) and to respectfully request your VETO of the bill.

The Propeller Club of Los Angeles/Long Beach serves the nation’s largest maritime gateway and port complex. Our association is comprised of members representing the many ocean carriers, harbor service craft, terminals, motor carriers, rail carriers, intermodal equipment providers, warehousing, logistics service providers, cargo owners, government agencies and labor unions associated with international goods movement through our ports.

The bill was originally intended to address concerns over a 2015 pipeline spill. However, the Bill as worded, will also apply to ships for simple accidental oil spills. The insurance and re-insurance markets which insure nearly all of the ships operating to and from California have advised that they will be unable to provide the necessary coverage or affordable premiums for ships calling in California because of the newly proposed penalties. Thus, shipping companies and beneficial cargo owners will be forced or further motivated to reroute cargo to alternative ports outside of California. This legislation will unfortunately  make California ports less competitive  resulting in a further reduction in market share which has already been under siege and ultimately impact the many jobs that are connected to the goods movement industry in California.

We respectfully request you VETO this bill.

As your new local President of the Propeller Club of Los Angeles & Long Beach, I am committed to providing our members with a Quarterly update about the key activities that the club is involved with. As I prepare my update for the 1st Quarter of 2020, I am hunkered down with my family working remotely from my home office under “shelter in place” orders
as I am sure many of you are. This pandemic has unquestionably become the key event in the first quarter of this year, while perhaps representing one of the greatest challenges for this generation to overcome together.

We had already experienced some early indications of the potential virus impact here in the nation’s largest international gateway based on the significant reductions in cargo volumes we experienced during the first quarter. This directly correlates with the impact on production in China back in January and February when the PRC was suffering from the widespread outbreak of the coronavirus and implemented containment initiatives including widespread factory closures. Fast forward to today where we are now facing the health risks here locally and around the world from a virus that originated in Wuhan China a couple of months ago is a testament to the fact that we truly do live in a global community and a global economy.

In spite of the COVID-19 challenges, the Propeller Club was still very active in Q1:

• 1/15/2020 Luncheon with Lt. Beal, USCG, Commanding Officer, Terrell House
• 1/31/2020 Annual Propeller Club Board of Governors Retreat
  Developed our 2020 Business Plan & Club Objectives
• 2/13/2020 Luncheon with Mario Cordero, Exec Director POLB
  Future Trends in the Port of Long Beach
• 2/25 2020 Propeller Club Board Meeting
• 3/9/2020 Propeller Club advocacy of POLA & POLB CAAP at Public Workshop
  Supported the Ports Proposed Clean Truck Fund Rate of $10/TEU
• 3/13/2020 B-fast with LCDR Anne Besser & Ensign Robert Cunningham
  USCG IMO2020 Enforcement Program
• 3/18/2020 Luncheon with Bill Shea, CEO, DCLI (Cancelled due to COVID-19)
  The Evolution of Asset Provisioning in the Digital Supply Chain Era
• 3/24/2020 1st virtual Propeller Club Board Meeting – COVID Impact

In the interest of the health and safety of our members and staff, the Propeller Club had to unfortunately cancel our March 18th luncheon and we will continue to comply with local guidelines regarding future club functions that we have on our schedule. Please look for further updates as we will likely be announcing potential changes in dates, venues and
delivery methodologies for some of our future events during these unusual
circumstances.

I am pleased to report another club milestone when we successfully conducted our first virtual Propeller Club Board meeting last week via video conference. While we missed being together, it was a very productive meeting and I am really excited to be working alongside these board members during these challenging times. It is reassuring that we
are finding ways to ensure that the club can be effectively governed remotely as we strive to bring value to our members. We are always seeking ways to add value for our local members, many of whom represent the “essential businesses” (ports, terminals, ocean carriers, motor carriers, railroads, intermodal equipment providers, logistics service providers, government officials and waterfront labor) that are tasked with keeping the
nation’s supply chain fluid in order to deliver the essential supplies required to fight this global pandemic. We are grateful to each and every one of you and appreciate you.

On behalf of the Propeller Club of LA/LB Board of Governors, I would like to extend our best wishes for good health to you and your families as we each do our part to help recover from this pandemic. We look forward to welcoming you to a future Propeller Club event as soon we have the “all clear” and are able to return back to business as usual.

Until then, please be safe.

Dear Members of the State Legislature,

The undersigned trade associations, organizations, and businesses altogether represent a broad cross-section of the California economy, including such industries as retail, manufacturing, agriculture, aerospace, and warehousing. The importance of a robust goods movement sector throughout the state cannot be understated. The sector services the states critical industries, supports 1 in 3 jobs in California and 1.6 million trade-related jobs in Southern California, and generates direly needed tax revenue. Moreover, the sector ensures that critical supplies can be available during the current crisis. We are requesting that Governor Newsom and the Legislature consider the importance of California’s goods movement industry sector and take action to reverse the decline in market share before California permanently loses jobs and direly needed state revenue.

West Coast Ports Face “Significant” Continual Decline in Market Share.

• A recent analysis, prepared for the Pacific Merchant Shipping Association (PMSA) by international trade economist Jock O’Connell found that West Coast ports’ market share has declined 19.4 percent since 2006.
• Dropping from 46.8% market share in 2006 to 37.7% in 2019, the impacts of these factors resulted in approximately 5.6 million fewer containers traveling through West Coast Ports versus competing gateways had West Coast ports maintained their market share.

Loss of Market Share Impacts the State’s Largest Employers, Increases Costs for Consumers, and Deprives the State of Infrastructure Investment, Environmental Benefits, and Tax Revenues.

• The loss of market share impacts many of California’s leading employers, including retail, trucking, warehouse and distribution centers, ports, railroads, marine terminals, and export industries such as agriculture and aerospace.
• Infrastructure improvements and operational costs will be borne by California residents, as discretionary import cargo is diverted to East and Gulf Coast Ports.
• Trade routes are established over time and around infrastructure such as rail, warehouses, and distribution centers. Loss of market share means that investments in infrastructure are happening in other states, not California, resulting in more jobs and higher state and local tax revenues elsewhere and fewer jobs and state and local tax revenue here.

We propose that you take the following steps to address the major causes of the loss of market share:

• Promote California ports as the most efficient and environmentally progressive ports in the nation.
• Meet the challenge from East and Gulf Coast states whose governmental leaders promote and invest in their ports and goods movement industries.
• Re-examine the state and regional regulations that are creating a disincentive to use California gateways. Determine whether the policies, particularly in environmental areas, are backfiring and encouraging more greenhouse gas emissions by sending more business to ports that are far behind California’s climate program.
• Reconcile state laws encouraging environmental and efficiency mandates with the need to re-train workers to adapt to a changing work environment.

Thank you for your consideration of this request and please contact me if you have any questions or need additional background on the issues raised.

Sincerely,

Signatories:
Pacific Merchant Shipping Association
Pacific Maritime Association
California Trucking Association
NAIOP California
San Pedro Chamber of Commerce
Harbor Trucking Association
San Gabriel Valley Economic Partnership
California Business Properties Association
Harbor Association of Industry & Commerce
Inland Empire Economic Partnership
Industry Business Council
Customs Brokers Association of Northern California
California Railroad Association
Propeller Club of Los Angles & Long Beach

National Maritime Day is observed each year on May 22nd, the date that the American steamship Savannah sailed from the United States to England back in 1819 marking the first successful crossing of the Atlantic Ocean using steam propulsion. This revolutionized ocean transportation by enabling increased schedule predictability since vessels were no longer
dependent exclusively on wind propulsion alone. On May 20, 1933, Congress declared May 22 as National Maritime Day to commemorate the men and women of the Merchant Marine who endure long and often
dangerous deployments moving commercial and military goods around the world that often places them in harms way in order to get vital goods delivered. The U.S. Merchant Marine suffered the highest percentage of losses of any branch of service during World War II since there was a concerted effort to shut down the Allied vital supply chain links required to support the war effort. There was a loss of 11,324 merchant mariners who gave their lives out of the nearly 250,000 members of the American Merchant Marine serving their country during the war representing a loss of over 4% in addition to the hundreds that were detained as prisoners of war and more than 800 ships that were sunk or damaged.

In 2006 the Maritime Administration joined forces with the American Association of Port Authorities, the US Army Corps of Engineers, Waterways Council Inc, the US Coast Guard, National Oceanic and Atmospheric Administration and other entities involved in the maritime industry to raise the awareness of National Maritime Day and of the maritime industry as a whole. On March 13, 2020, President Trump signed into law the “Merchant Mariners of World War II Gold Medal Act of 2020.” This resolution recognizes the vital contributions that merchant mariners made to the Allied victory in World War II. Later this year the leaders of Congress will present the Gold Medal to the American Merchant Marine Museum to recognize all the mariners who sailed during World War II.

As the world faces the COVID-19 pandemic, there is an increased awareness and respect of the vital importance of keeping critical goods moving through global supply chains to reach those in need. As the maritime industry further evolved with the advent of containerization, goods movement today involves a large and complex network of intermodal stakeholders that not only work on the ships but also at the terminals, ports, railroads, trucking companies and warehouses to maintain the fluidity of goods moving through these supply chains. The physical movement of the goods is only one dimension of the supply chain with the second dimension being the efficient management of the significant amount of data surrounding these goods. Technology plays a vital role in providing the visibility and connectivity required to ensure the efficient transition between each of the intermodal stakeholders. I do not want to diminish
the recognition of the mariners on Maritime Day but I feel that we owe all of the individual stakeholders that have been deemed “essential services” in fighting this pandemic a huge shout out and debt of gratitude today.

Unfortunately, it is not possible for us to gather and hold a traditional National Maritime Day event in our community due to the Coronavirus. However, please join me and the Propeller Club in our nation’s largest
port gateway here in Los Angeles and Long Beach to recognize and thank our mariners as well as all of the related essential supply chain stakeholders for the vital support they play to our economy throughout the year but particularly for their bravery in keeping goods moving in our fight against this pandemic.

Welcome to the Propeller Club of Los Angeles/Long Beach here in the nation’s largest maritime gateway and port complex. The Propeller Club is one of the longest standing international maritime organizations comprised of over 80 individual member clubs designated as “Ports” in key maritime locations around the world including 30 in foreign cities. “Propeller” in the name refers to the propulsion on ships that keeps the maritime industry and all the related supply chain stakeholders moving forward (ocean carriers, terminals, motor carriers, rail carriers, intermodal equipment providers, warehousing, logistics service providers, cargo owners, government and labor). Each of these supply chain stakeholder groups is represented within our membership as collectively the
synchronization of these functions is at the heart of what determines supply chain efficiency with respect to international goods movement. The Ports of Los Angeles and Long Beach report that over 190,000 local jobs (representing 1 out of every 12) are directly tied to the maritime industry so there is a high probability that membership in the Propeller Club of LA/LB can be of relevant value to you.

Throughout the year the Propeller Club of LA/LB organizes monthly luncheons and workshops featuring industry leaders that address the latest challenges and emerging trends impacting the maritime industry and goods movement. Our signature event, the Propeller Club/ILWU Seafood Feast, helps raise money for local high school scholarships and provides the opportunity for management and labor to enjoy a fun evening on the waterfront together while contributing to a good cause. As the oldest maritime organization in the region dating back to 1939, the Propeller Club provides an outstanding opportunity to network with industry thought leaders, educational programs to develop our next generation of leaders, and the ability to keep abreast of the most important issues facing our ever-changing industry.

On behalf of the Propeller Club of LA/LB Board of Governors, I would like to invite you to join us at our next event which you can find here on our new website. The Board is fully committed to continuing to provide our members with the highest level of quality programs and information that will keep you informed about the latest trends facing the maritime industry and how they impact the many local stakeholders that are involved in the global supply chain. We encourage you to get involved by joining us (and bring a friend) as we welcome your input and involvement regarding how we can continue to take the Propeller Club of LA/LB to new heights as the premier local club that keeps the maritime industry moving forward.

Sincerely,
David Arsenault
President, Board of Governors
Propeller Club of Los Angeles/Long Beach

Bill Mongelluzzo, Senior Editor | Jul 18, 2019 6:14 PM EDT

Photo credit: Shutterstock.com. Credit to Journal of Commerce

With a deal reached on training, APM Terminals’ request for a construction permit needed to install electrical recharging equipment at Pier 400 in Los Angeles can move forward to the final stage of approval.

International Longshore and Warehouse Union (ILWU) Local 13 and APM Terminals reached a tentative agreement Wednesday on a training program that will prepare longshore mechanics to maintain and repair the automated cargo-handling equipment the terminal operator will deploy at its Los Angeles facility. 

The six-month-long negotiations between the Southern California local and APM Terminals involving a new form of automation in North America appears to have been resolved amicably, with the ILWU achieving its goal of establishing a program to re-skill and up-skill longshore workers to maintain and repair automated cargo-handling equipment. In the coming month, APM will deploy the equipment on a 100-acre parcel of its container terminal when it arrives in Los Angeles. 

“We’re excited about the opportunity to up-skill our longshore workers for the equipment that will soon be arriving here,” Ray Familathe, president of ILWU Local 13, told JOC.com Thursday.

APM Terminals said dockworker training is crucial to the future of the port and the industry. “We believe that it is critical to the continued success of the Port of Los Angeles that the ILWU is trained for the jobs of the future. As we prepare to modernize Pier 400, we are glad to be working in partnership with the ILWU and PMA [Pacific Maritime Association] on implementing a training program that complements the changes at Pier 400, and in the broader industry,” APM said in a statement.

APM Terminals’ request for the construction permit that is needed to install electrical recharging equipment for the automated straddle carriers it will deploy at Pier 400 can now move forward to the final stage of the approval process before the Los Angeles City Council. If the council takes no action by Aug. 7, the agreement will become final on the next day, and the construction permit will be issued.

The fact that it took six months to approve what would normally have been considered a low-level construction permit illustrates the passionate give-and-take that is under way today between labor and management at North American ports over automation. On one hand, automation eliminates dozens of traditional longshore jobs, but also creates new, highly skilled, high-paying jobs for dockworkers. Longshore unions in the United States and Canada insist that they have jurisdiction over those jobs, and their members are trained to perform the work.

APM intends to deploy driverless, battery-powered auto-strads at Pier 400. Dozens of existing jobs in which longshore workers drive diesel-powered yard tractors to shuttle containers between the vessel and the container stacks will be eliminated. However, under the agreement, longshore workers who have been trained in the maintenance and repair (M&R) of diesel equipment will be re-trained for M&R work on zero-emission electrical equipment. This training will become even more valuable in the coming years under the Los Angeles-Long Beach Clean Air Action Plan, which calls for the use of zero-emission cargo-handling equipment by 2030.

James McKenna, president of the PMA, the employers’ organization that negotiates and administers the coastwide contract with the ILWU, said the training program has two parts. One part calls for re-skilling regular longshore workers who want to become mechanics. Another part of the program will up-skill existing ILWU mechanics to perform M&R work on the jobs being created by automation, such as repairing and maintaining electric and battery-powered cargo-handling equipment.

The training program in Southern California is terminal-specific. While it might become a model upon which similar training programs could be established, McKenna observed, “As a practical matter, let’s get this one up and running first.”

Last month, ILWU Canada and the British Columbia Maritime Employers Association (BCMEA) agreed on a new contract that took more than a year to negotiate. It was resolved when employers and the union agreed on a structure for handling automation at the ports of Vancouver and Prince Rupert. On the US East and Gulf coasts, where three semi-automated terminals operate, the International Longshoremen’s Association strenuously opposes full automation.

Contact Bill Mongelluzzo at bill.mongelluzzo@ihsmarkit.com and follow him on Twitter: @billmongelluzzo.

We are sharing the sad news that Jim Gladson, our founder and long time inspirational leader has passed away. He crossed the bar quietly in his sleep after breakfast Wednesday morning.

The family is actively planing a burial at sea and a celebration of life that we expect will be in August. Please watch your inbox for further updates.

The impact that Jim had on his family, friends, students, volunteers, employees and community was immense and we could not do justice to his legacy in this short email. However, there are two sayings that I think come close to summing up Jim’s passion for leaving the world a better place:

“School is where the kids are.”

“We will sail with no empty berths and we will leave no child on the dock for their ability to pay.”

Fair winds Jim,

Bruce

Dear Propeller Club of Northern California, and Los Angeles/Long Beach,

I am writing you to thank both clubs, in conjunction with the Propeller Club of Tacoma, Washington for generously sponsoring a cadet from The California Maritime Academy to attend the International Propeller Club Annual Convention in Port Canaveral, Florida.  I was nominated by Cal Maritime’s Director of Career Services and the faculty adviser of our local Propeller Club Chapter on Campus to attend this fantastic event.

The ability to attend working groups, learn from established maritime professionals, network, and meet my fellow cadets at the other represented maritime academies was an exceptional way to spend 4 days.  Having the ability to meet other cadets was especially beneficial, not only to have an understanding of the similarities and differences between our respective programs and campus’, but also to begin to cultivate the professional relationships that will surely continue well into the future.

It was an honor to be able to represent Cal Maritime, especially on the East Coast… Cal Maritime cadets are uniquely perceived throughout the industry as a whole and especially among the other academies. I am both honored and proud to continue that legacy.

Thank you again,
Nathan Griffin

P.S.  On a personal note, the ability to visit Kennedy Space Center was absolutely exceptional.  As a 4th generation Southern Californian much of my family worked in aerospace over the previous 50 years.  My grandfather began working for North American Aviation in 1962 and ended his career 38 years later after working on many of the projects listed on the monument which I am next to.  The ability to show him this picture could not have made either of us happier.