In a recent statement, over 200 organizations (Coalition) raised concerns with Los Angeles Mayor Karen Bass and Long Beach Mayor Rex Richardson urging them to reconsider the potential impacts of the South coast Air Quality Management District’s (SCAQMD) proposed Indirect Source Rule (ISR) for marine ports. These organizations represent national, statewide, regional, and local businesses, organized labor, agricultural sectors, and various other industries have expressed their concerns regarding the potentially negative repercussions of the ISR policy on the Ports of Los Angeles and Long Beach.
PORT ISR: POTENTIAL IMPACTS
The proposed ISR will essentially cap cargo volumes at the Ports, a move that could have significant, far-reaching implications. The Ports of Los Angeles and Long Beach are integral to both regional and national economies, generating approximately $19.93 billion in labor income and support 3.1 million jobs across the U.S. The Ports also play a key role in Southern California’s intermodal supply chain. Any disruption or limitation in cargo handling capacity threatens to ripple across multiple industries, from logistics to agriculture.
One of the primary concerns raised by the Coalition is that the proposed rule could divert cargo to ports in other states or countries—specifically, Mexico and Canada. This could create unintended environmental consequences, as the ports to which this cargo might be redirected are generally less environmentally efficient. Ironically, this shift could result in higher emissions overall, counteracting the intended environmental benefits of the ISR.
“There is broad agreement that it would be more effective and productive to forego an ISR and instead focus on an infrastructure program to support current and future needs related to zero-emission infrastructure and equipment.”
Thomas Jelenić | Vice President | Pacific Merchant Shipping Association
ENVIRONMENTAL LEADERS: PORT OF LOS ANGELES, PORT OF LONG BEACH
The Port of Los Angeles and Port of Long Beach have earned widespread recognition as leaders in environmental progress, holding the distinction as the cleanest ports in North America. Over the past several years, these ports have successfully reduced diesel pollution by 90%, largely through collaborative efforts between marine terminal operators, organized labor, and other stakeholders.
RECOMMENDATION: INFRASTRUCTURE INVESTMENTS
The Coalition’s letter calls on Mayors Bass and Richardson to pivot toward the development of a comprehensive plan aimed at building the necessary infrastructure to support zero-emission technology. Supporters of this plan suggest that with an investment in advanced equipment and systems, the Ports can continue to reduce their environmental footprint without imposing additional burdens on supply chain operators or limiting cargo throughput.
“It is essential that any regulatory efforts be balanced between improving the environment while also protecting the economy and workers at the ports who play a key role in supporting local communities.”
Gary Herrera | President | International Longshore and Warehouse Union (ILWU) Local 13
The ILWU also infer that the Port ISR could lead to the loss of tens of thousands of jobs, further exacerbating the economic challenges already faced by the Southern California region.
Stay up-to-date on freight news with Green’s Weekly Freight Market Update by following us on LinkedIn. For continuous updates, make sure to check out our website at greenworldwide.com.
