U.S. shippers struggling with supply-chain gridlock on the West Coast face new concerns in the coming year as dockworkers and marine terminals gird for talks on a new labor contract.
“I don’t see an end in sight, especially with the ILWU contract negotiations next year,” said Caryn Blanc, managing partner at the Kearny, N.J.-based Triangle Group, a logistics firm that provides ocean shipping, trucking and warehousing services to major retailers.Top news and in-depth analysis on the world of logistics, from supply chain to transport and technology.The union this month rejected an offer by port terminal operators to delay negotiations until 2023.
The continuing congestion leaves shippers in a bind. If they bring in cargo early or shift to alternate gateways they risk exacerbating. “If they wait and see if there is disruption, then what?” said Jonathan Gold, vice president for supply chain at the National Retail Federation. “They don’t want to be caught flat-footed.”
During the talks that began in 2014 and dragged into 2015, dozens of ships backed up off Southern California causing delays that cost individual retailersin increased costs and lost sales. In 2002, employers locked out workers for 10 days at one point before President George W. Bush invoked the Taft-Hartley Act covering oversight of union activities to open up ports.
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