West Coast Port / Contract Negotiation Status
In April, shippers have accelerated import shipments through several U.S. ports to avoid disruption at the West Coast Ports due, in part, to the potential ‘slow down’ or strike of the ILWU.
Shippers have already begun to accelerate shipments according to Wolfe Research. Their quarterly survey results indicate that fifty-one percent of respondents:
“have already, or plan to accelerate some ocean shipments in the second quarter ahead of a potential labor issue”
Wolfe findings in the survey are~
“consistent with very strong import volumes into the West Coast ports in April.”
Two strategies that shippers are using: Accelerating shipments AND diverting them away from the West Coast prior to the West Coast longshore labor negotiations, their contract expires at midnight on June 30.
It looks like acceleration of shipments has already started. In April, import volumes increased over 11 percent at both the port of Los Angeles and the port of Long Beach.
Other U.S. ports reported import volume growth in April (according to PIERS, the data division of JOC Group);
- Tacoma at 22.5%
- Houston at 19.2%
- Charleston at 17.4%
- Norfolk at 16.6%
- Oakland at 14.1%
On May 12th, contract negotiators between the International Longshore and Warehouse Union and the Pacific Maritime Association began on an upbeat note.
From the JOC:
“Both sides said they expect cargo to keep moving until an agreement is reached,” the ILWU and the employers association that represents shipping lines and terminal operators said in a joint statement.
To read more: JOC
If Superior Freight Services can assist with any questions or concerns, please contact us at superior@supfrt.com or call us at 800.298.4305.
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