![]() ![]() Backup protocols from COVID era still in place The top West Coast ports handled 812,000 twenty-foot equivalent units of containerized import in April, accounting for 48% of the country’s total, according to The McCown Report. supply chain’s exposure to labor unrest remains acute. shippers have already shifted supply chains toward East and Gulf Coast ports in preparation for potential disruptions on the West Coast.īut the U.S. Storage costs for refrigerated food cargoes are even higher. Export goods turned away from terminals due to labor action need to be stored elsewhere until cargoes can be received, with added storage costs cutting into exporter profit margins. exporters were caught in the middle in Friday’s incident. Terminals were shuttered.Īs with the late-March slowdown, U.S. Work previously stopped in the ports of Los Angeles and Long Beach for 24 hours between the night shift on March 30 and day shift on March 31. The latest work slowdown is the second major incident this year, although there also have been multiple smaller and more subtle disruptions, according to the PMA and Agriculture Transportation Coalition. In reference to union members not showing up for work on Friday, ILWU Local 13 said “the rank-and-file membership of the Southern California ILWU has taken it upon themselves to voice their displeasure with the ocean carriers’ and terminal operator’s position.” Second major disruption this year ILWU Local 13 said, “Ocean carriers and terminal operators have thumbed their noses at the work force’s basic requests, insinuating that the health risks and the loss of lives … during the pandemic did not matter to them and they were expendable in the name of profit.” If this work stoppage drags on and contract negotiations continue to falter, the Biden-Harris administration must step in and broker a deal.” The ILWU staged “similar work actions that have shut down or severely impacted operations at the ports of Oakland, Tacoma, Seattle and Hueneme,” said the PMA.Īccording to Jessica Dankert, vice president of supply chain at the Retail Industry Leaders Association (RILA), “Retailers are alarmed to learn of the work stoppage underway at several West Coast ports. On Friday, the ILWU staged “concerted and disruptive work actions that effectively shut down operations at some marine terminals at the ports of Los Angeles and Long Beach,” said the Pacific Maritime Association (PMA), the group representing the terminals in the labor negotiations. ![]() The betting line just shifted in favor of the large-scale disruption scenario. Oddsmakers who placed little weight on the April 20 announcement look like they’re right. The progress announcement allowed her to tell lawmakers she had obtained positive results after engaging the parties. That announcement came the very day the Biden administration’s pick to lead the Department of Labor, Julie Su, had her Senate nomination hearing. Yet some handicappers would have noticed the timing. The International Longshore and Warehouse Union (ILWU) said on April 20 that agreements were reached “on certain key issues,” reportedly including automation. There have been glimmers of hope along the way, at times nudging the betting line toward a less dramatic climax. The one-year anniversary has now come and gone. Talks on the new contract began in May 2022. The longer the talks drag on, the higher the chance of a worst-case scenario. supply chains, akin to the labor fallout in 2014-2015? If there was a way to place a “prop” bet on this, how have the odds changed since the last port labor contract expired on July 1, 2022? Will West Coast port labor negotiations devolve into a major, extended disruption to U.S. Dockworkers in Los Angeles are pushing for higher pay. ![]()
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