Minutes from November 25, 2014 Open Board Meeting-Dr. John Husing Impact of Port Issues in the IE

Tuesday, November 25, 2014

Open Board of Directors Meeting

San Bernardino Community College District

114 S. Del Rosa Drive

San Bernardino, CA   92408


Present:Don Averill, Deborah Barmack, Tom Brickley, Ann Bryan, Ken Coate, Ron Griffin, Scott Hofferber, Matthew Isaac, Mark Kaenel, Bill Lemann, John Mirau, Tomas Morales, Tom Nightingale, John Prentice, Brian Reider, Susan Rice, Kristine Scott, Steve von Rajcs, Phil Waller, Janet Weder and Ray Wolfe. 


Guests:  Ted Alejandre, Adam Entov, Ed Lasak and Lance Ryan.


Announcements:  1) The Executive Committee will meet next week on December 2, 2014.  The group will meet in room 104 in the Professional Development Center.  2) There will be a ground breaking ceremony for the future home of Loma Linda University Health-San Bernardino at noon on Wednesday, December 10, 2014 at 250 South G Street, San Bernardino.  Rsvp by December 3, 2014 to 909-558-5362 or gdallen@llu.edu  3) Inland Action will co-sponsor the annual CTC reception held on December 10, 2014.  Detailed information about the event and info to Rsvp will be sent to the membership.  4) Bank of America and the San Bernardino Superintendent of Schools have been proposed for membership.  This is the second announcement of their proposed membership. 5) UCR’s  Randall Lewis Seminar: Regional Grand Bargain a presentation by William Dodge, Former Executive Dir., National Association of Regional Councils will be held on December 10, at 5:30 p.m. at the CE-CERT Building.  For further information http://research.ucr.edu/event/about.aspx?ec=CSSD121014


M/S/P:  Minutes from November 18, 2014.


Jan Weder introduced Dr. John Husing, Vice President, Economics & Politics, Inc.


Dr. Husing discussed the impact to the Inland Empire when there are problems, slow down or stoppage at the Ports of L.A. & Long Beach.


The five year contract between the Longshoremen and the Pacific Maritime Association has expired.  They have been in negotiations since July with labor insisting on no new technology at the ports for fear of labor reductions.  There is anger, and both sides are feeling frustration.  All parties understand that a strike will hurt both sides, but they still expect a short term strike or lockout before a settlement is reached.  Their disputes will not be settled easily, and Presidential intervention is likely.   


The effects of a strike or lockout are far reaching.  Approximately 36% of the Inland Empire economy can be attributed to the logistics industry.  It is critical for goods movement to travel thru the IE.   The Logistics industry can infuse life back to the middle class and it’s a great match for the Inland Empire.  The median pay for these jobs is $44K and rising.  Additionally 64% of these jobs require no higher education.  The education of 46% of the IE’s labor force is at a high school level or less.  Not only do we have the “dirt” but we have an abundance of the blue collar work force that the logistics industry hires. 


Although the numbers indicate that output in the manufacturing sector in California has increased, there has not been job growth.  


Discussion of Port Issues

Trade Diversion: Much concern has been expressed that other ports such as the Panama Canal and east coast ports will be used instead of the ports of L.A. & Long Beach.  The Panama Canal and east coast ports are not equipped, however, to handle the volume  nor do they have the infrastructure needed.  These alternate routes would also be costly as they require more time at sea.  Additionally new ships are much larger and even with the Panama Canal expansion the newest ships will not be able to get through.  These trade diversion concerns are not a long term issue. 

Chassis Access:  Containers are placed on chassis and in the past the shipping lines owned the chassis.  There were always enough for the containers and were accessed easily.  Since discontinuing the practice, shipping companies cut their costs and independent companies took up the slack.  However the independents did not understand the volume or know firsthand of the scheduling of the ships coming in.  This has caused a slow down on the thru put and currently there are 21 ships  at sea  waiting to unload.  The problem has been resolved for the future and next year the chassis will be ready and accessible as needed.

Trucking Industry Understaffed:  There has been a lack of trust and belief that the economy is coming back in the trucking industry.  They were hit hard with the great recession, and they have been reluctant and very cautious  in rebuilding inventory. 

Unions:  Trucks at the port gates are I.O.O.’s (independent owner operators) and teamsters.  The teamsters want all the I.O.O.’s out and unions battle for jurisdiction.  Wildcat strikes are likely and lots of lawsuits.


The AQMD’s plan for 2015 creates a clash between clean air and employment.  The plan will to shut out the flow of trucks into the IE.  The air quality in southern California has greatly improved but still has a long way to go to meet federal and State standards.  We tend to believe the pollution is the biggest cause for poor health in our area, but only 10% of health problems can be attributed to pollution, while  90% of health issues are caused by poverty and its associated problems.


The logistics industry is solving some of our economic problems, creating jobs and reducing overall poverty which reduces health problems.  A wide and long term vision should be sought when making policy and regulations.



A Q & A period followed.


Meeting adjourned at 8:30a.m.