MARIA: WELCOME BACK. NOW RIGHT TO THE PORT. THE INFLECTION POINT OF THE SUPPLY CRUNCH, AMERICA'S PORTS. THE PORT OF LONG BEACH EXTENDING OPERATIONS TO 24 HOURS A DAY MONDAY THROUGH THURSDAY THOUSAND TO HELP ALLEVIATE A BACK LOG OF SHIPS AWAITING TO OFFLOAD CARGO, LOOKING TO EXPAND TO SEVEN DAYS A WEEK IN THE NEAR FUTURE, BUT IT IS FACING A WORKER SHORTAGE. MARIO CORDERO JOINS ME NOW. THANKS VERY MUCH FOR ALL THAT YOU'RE DOING THERE IN LONG BEACH. CAN YOU ASSESS WHAT'S HAPPENING NOW? IF HOW BAD ARE THESE SUPPLY CRUNCHES THAT YOU'RE LOOKING AT? >> WELL, THANK YOU, MARIA. THE SUPPLY CHAIN IS DEFINITELY DISRUPTED, AND IT HAS BEEN FOR SOME TIME. SO THE SITUATION'S IN A CRISIS MODE, AND FROM PORT OF LONG BEACH, AS YOU'VE REFERENCED, WE HAVE THOUSAND MOVED FORWARD WITH A PROJECT WITH ONE OF OUR TERMINALS FOR EXTENDED GATE HOURS THAT'S A STEPPINGSTONE TO 24/7. MARIA: SO YOU'RE TALKING ABOUT THE BUSIEST U.S. PORT COMPLEX, AND WE'VE GOT MOUNTING SHIPPING DELAYS. A LOT OF PEOPLE WORRIED ABOUT THE HOLIDAY SHOPPING SEASON AND GETTING THE GOODS THAT WE NEED NOW AND THROUGHOUT THE REST OF THE YEAR. HOW DO YOU SEE THIS PLAYING OUT? >> WELL, NUMBER ONE, I WOULD ADD VISE THE CONSUMERS TO START YOUR CHRISTMAS SHOPPING EARLY. AS YOU REFERENCED, THIS IS THE NATION'S LARGEST PORT, CONTAINER PORT COMPLEX. LONG BEACH AND LOS ANGELES WILL BE MOVING AN ESTIMATED 20 MILLION CONTAINERS THIS YEAR, THAT'S THE FORECAST. SO IF I AM A CONSUMER AND, AGAIN, YOU'RE GETTING READY FOR HOLIDAY SHOPPING, I WOULD SHOP EARLY BECAUSE THERE ARE DEFINITE DELAYS IN THE SUPPLY CHAIN. MARIA: SO WHAT IS THE REASON? ARE YOU HAVING TROUBLE FILLING THE SHIPS? IS IT A WORKER SHORTAGE? IS IT A DISRUPTION IN TERMS OF THE SUPPLY CHAIN WHERE THE PRODUCTS ARE BEING MADE IN CHINA? WALK US THROUGH WHAT'S GOING ON, WHAT ARE THE ISSUES. >> WELL, THERE'S A CONFLUENCE OF FACTORS, BUT YOU MENTIONED ONE IMPORTANT ONE. THERE ARE DELAYS FROM THE CARGO COMING FROM CHINA. IN CHINA WE HAVE SOME MAJOR PORTS THERE, AND IF THEY FIND A COVID-19 POSITIVE IN THEIR LABOR FORCE, THEY SHUT DOWN THE TERMINAL. THAT CAUSES DEFINITELY A DELAY. SO HERE WE HAD LAST WEEK AS HIGH AS 7IF 3 VESSELS -- 73 VESSEL ES AT ANCHOR. THANKFULLY, THAT NUMBER'S REDUCED TO AROUND 62 TODAY. THE OTHER BIG FACTOR IS THE CONSUMER DEMAND IN THE UNITED STATES. OUR ECONOMY IS LOOKING TO A 6% GROWTH YEAR, YEAR TO YEAR, AND THE CONSUMER WHETHER E-COMMERCE OR BRICK AND MORTAR PURCHASING, IT'S REALLY HEALTHY. ONE LAST THING ABOUT E-COMMERCE. CONSUMERS HERE IN THE UNITED STATES HAVE INCREASED THEIR ONLINE BUYING BY 14% YEAR TO YEAR, SO IS SUFFICE TO SAY, AGAIN, CONSUMER DEMAND IS A BIG FACTOR IN TERMS OF WHAT WE HAVE HERE WITH REGARD TO CONSUMER DURABLE GOODS. MARIA: SO LET ME ASK YOU ABOUT THE SPECIFIC PRODUCTS THAT ARE HAVING THE MOST DISRUPTION. WHAT ARE YOU SEEING? IS THIS JUST REGULAR CONSUMER PRODUCTS LIKE NIKE SNEAKERS? WE UNDERSTAND THE JOURNAL THIS MORNING REPORTING THAT ARTIFICIAL CHRISTMAS TREE PRICES HAVE JUMPED 25%. WHAT SPECIFICALLY ARE YOU SEEING IN TERMS OF THE BOTTLENECK, WHERE? IN WHAT KIND OF PRODUCTS? >> I THINK IT'S ACROSS THE BOARD, MARIA. WHETHER IT'S RAW MATERIAL OR DURABLE GOODS, BUT IN TERMS OF CONSUMER GOODS, YOU JUST MENTIONED A GOOD EXAMPLE, NIKE SHOES. A LOT OF THAT IS MANUFACTURED IN VIETNAM. AND, AGAIN, VIETNAM IS IN THE SAME SITUATION THAT CHINA'S IN THEY HAVE A CLOSURE -- I'M SORRY, IF THEY HAVE A COVID-19 POSITIVE JUST BY ONE PERSON, THEY CLOSE THE PORT. AND, OF COURSE, THAT IS A HUGE FACTOR IN THE DELAYS. SO, YOU KNOW, WHETHER IT'S ELECTRONICS, WHETHER IT'S FURNITURE, AUTO PARTS, IT'S JUST, IT COVERS A WIDE SPECTRUM HERE. MARIA: AND HOW DO YOU SEE IT PLAYING OUT? WHAT DO YOU THINK IT'S GOING TO TAKE TO ALLEVIATE SOME OF THE STRESS? >> WELL, I THINK AS WE MOVE FORWARD TOWARDS SECOND QUARTER OF 2022 WE'LL SEE CONSUMER DEMAND OR CONSUMER PURCHASING TAPERING DOWN AND, AGAIN, I THINK YOU'RE GOING TO HAVE A SCENARIO WHERE THE SUPPLY CHAIN GETS TO SOME FORM OF NORMALCY. BUT FOR THOUSAND, KEEP IN MIND WE'RE -- FOR NOW, WE'RE AT PEAK SEASON IN THIS INDUSTRY, AND THAT MEANS HIGH VOLUME HOLIDAY PURCHASING. SO I THINK WE'RE GOING TO HAVE THIS SITUATION FOR THE NEXT FEW MONTHS, BUT HOPEFULLY BEGINNING NEXT YEAR IT'LL TAPER. MARIA: WOW. AND WHAT A TIME TO BE HAVING PROBLEMS FILLING THE SHIPS, RIGHT? WHAT ABOUT EMPLOYEES, GETTING THE WORKERS ONLINE TO HELP WITH THE MOVEMENT OF PRODUCTS? >> WELL, FORTUNATELY HERE IN LONG BEACH, BECAUSE WE WERE PROACTIVE IN MAKING SURE WE HAD OUR MAYOR GARCIA AND GOVERNOR NEWSOM PROVIDE VACCINATIONS TO OUR DOCK WORKERS, THERE'S A GOOD PERCENTAGE OF THEM THAT ARE VACCINATED. SO WE DON'T HAVE TOO MUCH OF A SITUATION RELATED TO COVID. BUT KEEP IN MIND THIS WHOLE DISRUPTION TO THE SUPPLY CHAIN IS VERY MUCH A BIG FACTOR DUE TO COVID-19. AND WE COULD GO BACK TO A YEAR AGO WHEN ALL THIS IMPACT HAD ON THE SUPPLY CHAIN, AND IT CORONETS. SO -- IT CONTINUES. SO WE WILL CONTINUE TO SEE DISRUPTION HERE IN THE SUPPLY CHAIN WHICH WILL AFFECT ALL FACTORS AND STAKEHOLDERS IN THIS GOODS MOVEMENT HERE. AND, AGAIN, ULTIMATELY, THE AMERICAN CONSUMER. AND YOU MENTIONED ONE IMPORTANT THING, THE PRICE OF SHIPPING AND TRANSPORTATION HAS SKYROCKETED. SO THERE'S GOING TO BE PRICES PASSED DOWN TO THE CONSUMER, UNFORTUNATELY. MARIA: RIGHT. IT'S A GREAT POINT, MARIO. NOT ONLY ARE WE SEEING THESE DISRUPTIONS, PEOPLE NEED TO GET READY TO PAY UP AND PAY MORE FOR THE PRODUCTS BECAUSE THAT'S THE STORY OF SUPPLY AND DEMAND. MARIO, WE UNDERSTAND HOW IMPORTANT OPINION THE LONG BEACH PORT IS. -- THE LONG BEACH PORT IS. THANKS VERY MUCH. YOU'RE ON THE FRONT LINES, AND WE APPRECIATE YOUR TIME THIS
