Lithium Battery Fire Disrupts Operations at Los Angeles and Long Beach Ports

Operations at the ports of Los Angeles and Long Beach were significantly impacted as several terminals remained closed due to a fire ignited by an overturned tractor-trailer carrying lithium batteries. This incident, which began on Thursday, has raised serious concerns about cargo safety and the efficiency of the supply chain.

Incident Overview

The accident took place on a crucial roadway connecting the two ports, halting operations at multiple terminals through the second shift on Friday. The Los Angeles Fire Department reported that the damaged lithium batteries were not only burning but also off-gassing, with at least one battery experiencing an explosion. Firefighters are currently working to relocate the hazardous container to an open lot, where it will continue to burn until the situation is under control.

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Impact on Port Operations

Affected terminals, including APM Terminals, Fenix Marine, Everport, and Yusen, will remain closed as efforts to clear the site progress. However, TraPac and the West Basin Container Terminal are operational, as is the World Cruise Center. At least one of the impacted terminals plans to resume operations on Saturday morning. Fortunately, no injuries have been reported.

A spokesperson from the Port of Long Beach indicated that they do not expect this incident to disrupt overall cargo flow significantly.

Broader Supply Chain Concerns

This disruption coincides with potential labor strikes at major container ports along the Atlantic and Gulf coasts, where dockworkers' contracts are set to expire on Monday. Analysts suggest that any work stoppage could lead to a backlog requiring at least four weeks to resolve. Consequently, importers are increasingly redirecting their goods to the West Coast to avoid disruptions and to prepare for potential tariff increases stemming from escalating trade conflicts.

Matt Schrap, CEO of the Harbor Trucking Association, highlighted the fragility of the supply chain, even under optimal conditions. He emphasized the necessity for safety in transporting lithium batteries, given their rising presence on roadways and in ports. Schrap noted, “We need to make sure that when it leaves that terminal, it is secure, it is on the right equipment, and it’s going to be reaching its destination safely.”

Conclusion

As the situation develops, stakeholders in the supply chain will be closely monitoring the investigation into the accident. The incident serves as a stark reminder of the critical need for safety measures when handling hazardous materials like lithium batteries, ensuring that the supply chain remains resilient and efficient.