In a typical bad news, good news story, the Los Angeles-Long Beach port complex is experiencing congestion at marine terminals and rail yards. But the problem isn't due to actions by longshoremen whose contract expired at 5 p.m. ET Monday, but because of a growing crush of cargo.

Shippers and carriers outlined the scenario that developed during the month of June at the nation's busiest port complex:

Many importers shipped early to avoid chaos on July 1 when the International Longshore and Warehouse Union contract expired. Importers' warehouses filled up with cargo, and they left containers sitting at the marine terminals longer than usual. With cargo backing up at their facilities, terminal operators had to place a large percentage of their containers on the ground. When containers are grounded, it takes longer to retrieve them and turn them over to truckers.

The congestion at the warehouses and marine terminals had a ripple effect throughout the intermodal supply chain. The terminals had to call out more part-time, or casual labor, to handle the work load. Since the casuals are not as familiar with terminal procedures as steady longshoremen, gate operations slowed down. Truckers report sitting in line for three hours or longer, and some are refusing to go to the harbor unless terminals agree to pay for waiting time.

The Union Pacific and Burlington Northern Santa Fe railroads are experiencing shortages of intermodal equipment, and this is contributing to delays at their rail transfer yards and on their trains leaving Southern California.

"Yes, we are busy," said UP spokesman John Bromley. "There are equipment shortages, and there are some delays," he said. A spokesperson for BNSF said that the railroad is also experiencing some delays at its intermodal rail yards and with trains leaving the region.

Terminal operators said longshoremen are not engaging in work slowdowns, a tactic the union has used in previous negotiations as the contract deadline approached. A number of longshoremen are taking vacations, normal in late June when schools let out for the summer.

The Port of Los Angeles reported a 35 percent increase in containerized imports in May and Long Beach recorded an 18 percent increase compared to May 2001. Port and shipping executives predict large gains when June statistics are compiled.

Conventional wisdom is that if importers ship some of their cargo early in May and June, cargo volumes will drop off in July. That may not be the case this year. Don Wylie, managing director of maritime services at the Port of Long Beach, said carriers are projecting strong cargo volumes for July and eyond. "It looks like our peak this year will be a real peak," he said.

In 2001, cargo volumes during the August-to-October peak shipping season were disappointing due to the economic recession and the effects of the Sept. 11 terrorist attacks.

Bromley said the UP expects its intermodal shipments in July to be strong, based on orders received from international shippers. "We are optimistic that business will be good this summer. The economy is driving this more than anything else," he said.

By Bill Mongelluzzo