A wave of industrial action across US west coast ports has entered its fourth day as contract talks between employers and staff stall.
The Pacific Maritime Association, which represents west coast terminal operators, said Friday that dockworkers were “staging concerted and disruptive work actions” that had stopped or severely disrupted operations stretching from terminals at southern California’s big container port complex at Los Angeles and Long Beach to Seattle with Oakland suffering the largest disruptions. The industrial action carried on over the weekend and is ongoing today.
ILWU international president Willie Adams in a statement said talks are ongoing.
The latest work actions come as labour talks between the PMA and the International Longshore and Warehouse Union (ILWU) stretch into their 13th month.
Freight rates into the US might increase quite sharply
“We aren’t going to settle for an economic package that doesn’t recognise the heroic efforts and personal sacrifices of the ILWU workforce that lifted the shipping industry to record profits,” when cargo surged during the early days of the pandemic, Adams said.
According to Descartes Datamyne, west coast ports processed 40% of US container imports in the first quarter this year, down from 45% in the same period in 2019.
Shippers’ decision to shift to the east coast has been thrown a curve ball in recent weeks with the news from the Panama Canal where severe drought – and the likely onset of the El Niño weather phenomenon – is seeing a series of draft restrictions being introduced.
“If this is not resolved very quickly, the chain of dominoes which will fall is quite predictable,” stated Lars Jensen, CEO of consultancy Vespucci Maritime, in a LinkedIn post.
According to Jensen, vessels will start backing up along the west coast, as they did eight years ago during the last protracted strike action.
“Freight rates into the US might increase quite sharply,” Jensen predicted if the shutdowns become widespread and protracted.
It’s quite concerning to note the situation. Hope everything gets resolved and normal course resumes soon.
The PMA associated employers are sending crews home 2 hours into their shifts then blaming them that the freight’s not moving. They did it last time there were negotiations and everyone believed them. Please research more broadly before publishing about this contract dispute.
Here’s a question for readers… PMA includes carrier interests. With TPEB rate levels at very low levels, will those carrier interests be motivated to compromise with the ILWU on wages, or will they instead prefer to benefit from prolonged labor disruption vis-a-vis driving higher rates?