With the Pacific Maritime Association (PMA) and the International Longshore & Warehouse Union (ILWU) recently agreeing to a tentative agreement on a new five-year contract last weekend covering about 20,000 port employees at 29 West Coast ports following roughly nine months of stops and starts and acrimonious negotiations, the focus for all port and supply chain stakeholders is firmly on the future.
News / Global Logistics
Supply Chain 247
For the past few weeks, a labor dispute has been unfolding at the Port of Los Angeles and the Port of Long Beach.
After flying over the area while coming in to land at LAX, I saw all of these giant container ships anchored offshore and instantly knew that I had to photograph it.
Macy’s Inc (M.N) said sales and margins in the current quarter would be hurt by disruptions at U.S. West Coast ports, and the retailer forecast full-year profit and revenue that fell short of analysts’ expectations.
Congestion at the U.S. West Coast ports could take as much as two months to unwind, according to port and trade group officials, with retailers and other companies bracing for further shipment delays after the apparent resolution of a months-long labor dispute.
Ports are coming back to life along the U.S. West Coast after dockworkers resolved a nine-month labor standoff, though the cargo backlog from ships waiting offshore may take eight weeks to clear.
The Pacific Maritime Association (PMA) and the International Longshore Warehouse Union (ILWU) announced a tentative agreement that must still be approved by the ILWU membership.
The deal, confirmed in a joint statement by the two sides, was reached after the U.S. labor secretary arrived in San Francisco this week to help broker negotiations that had dragged on for nine months between the shippers and the International Longshore and Warehouse Union.
Negotiators in the nine-month standoff at U.S. West Coast ports are ratcheting up discussions as Labor Secretary Tom Perez seeks to move talks to Washington if dockworkers and their employers can’t reach a resolution.
The Longshoremen’s union is getting ready to do to LA/Long Beach what the UAW did to Detroit. By wrongly assuming that port operators can be extorted because the Pacific Ocean can’t be moved, the ILWU is badly overplaying its hand. Mediation from Washington may help settle things before they deteriorate into an open strike/lockout, but much of the damage is already done.
Supply Chain 247
The move by the Obama administration came after shippers vowed to prevent the loading and unloading of freight through Monday from container ships at the 29 ports, barring a settlement in talks with the dockworkers’ union.