Continuing contract negotiations at West Coast ports concerning for shipping companies

APRIL 20, 2023:

Increasing attention is getting devoted to the West Coast port contract negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union. The concern is because of the recent and continued slowdowns and temporary work stoppages at the Ports of Los Angeles and Long Beach.

“Given how the tension between the two parties appears to be increasing, this topic will likely remain a significant point of discussion for the foreseeable future,” says Mike Steenhoek, executive director of the Soy Transportation Coalition.

A recent work stoppage from April 6 to April 7 at both ports and the subsequent slowdowns were “deliberately disruptive,” according to the PMA, the group that represents 70 terminal operators. The two parties have been negotiating a new five-year contract since July 1, 2022. These negotiations don’t apply to the bulk of exports of soybeans and grain from Pacific Northwest ports, which operate under separate contracts.

APRIL 17, 2023:

The lack of a West Coast labor contract between the International Longshore and Warehouse Union and the Pacific Maritime Association could be dangerous and permanent. That’s according to the Agriculture Transportation Coalition.

Coalition Executive Director Peter Friedmann says, “Too many West Coast marine terminals are operating on reduced schedules, creating massive disruption.”

Shippers are moving cargo from the West Coast to ports on the East Coast. Friedmann says that could be a permanent move. West Coast ports are essential to the competitiveness of U.S. agricultural exporters. U.S. agriculture’s largest international markets are in the Asia Pacific, and the most direct and fastest route is by truck or rail to the West Coast gateways. U.S. ag faces extremely competitive global sourcing competition, so it must be faster and less expensive than other exporters.

Friedmann adds, “If the import cargo and the ships carrying it is trending to U.S. East Coast ports and away from the West Coast, exporters have fewer vessel sailings.”