The Coalition of New England Companies for Trade (CONECT) issued an advisory Thursday evening regarding a possible West Coast Trade Disruption.
News / Supply Chain Alerts
Please note we are currently seeing congestion and delays at the Los Angeles and Long Beach ports. The port congestion, coupled with equipment shortages, is resulting in delays of 7 to 10 days or more for containers destined to move inland on rail.
In follow up to MIQ’s Trade Alert of May 27, 2014; the PMA / ILWU the current labor contract is set to expire on July 1, 2014. No one expects a renewed contract agreement prior to July 1. It is important to note that from the beginning of the contract talks on May 12, 2014, BOTH sides have said that they are committed to reaching an agreement without any labor disruption. So unified have they been on this message, when there was a rumor that the talks had broken down on June 4, 2014 a joint press release was immediately issued reaffirming their mutual commitment to working through an agreement without any labor disruptions.
On May 12, the PMA (the negotiating body for the west coast marine terminal operators) and the ILWU (the west coast longshore union) began 2014 contract negotiations in San Francisco. Each side has laid out their starting demands most of which will either be settled quickly or completely dismissed depending on merit by both parties. The ILWU indicated that they want a two year contract while the PMA prefers a six year contract but have indicated they could concede to a minimum contract term of no less than three years.
The Customs Trade Partnership Against Terrorism (C-TPAT) program provides special benefits for its participants in exchange for extra security procedures and processes, which prevent tampering and infiltration of legitimate cargo moving though the international supply chain with contraband.
June 30, 2014 will mark the end of the current International Longshore Workers Union (ILWU) contract. The ILWU manages the labor for all Longshore work done on the west coast of the United States from Seattle to San Diego and Vessel Pilots in the Panama Canal.