Disruptions in numerous West Coast ports across the U.S. may soon subside as the ILWU and PMA reach a deal. ILWU workers and the PMA (Pacific Maritime Association) have negotiated a new contract for the past 13 months. After over a year of unsuccessful talks, the ILWU voiced their displeasure by protesting and walking off seaports. Terminals in the ports of Long Beach, Los Angeles, Seattle, Oakland, Hueneme, and Tacoma were all impacted by limited employees. As containers piled on terminals, outbound and inbound dwell times spiked. In five major West Coast ports, average dwell times increased to 13%. The Port of Tacoma’s dwell time reached nearly 87%.
Disagreements in contract talks resulted in terminal shutdowns and the complete closure of specific ports. The Port of Seattle closed completely on June 10th due to insufficient ILWU dockworkers showing up to work. Along with conflicts resulting from inadequate wages, health and safety concerns were also in the conversations. Reportedly 43 ILWU workers died during the coronavirus pandemic, with over 13 dying from covid. As shippers started to pay attention to the disruptions, they began shipping cargo to East and Gulf Coast ports. Even when the negotiations started, West Coast Ports experienced close to a 15% market loss due to the transition.
ILWU and PMA reach Deal
The deal was announced as a “tentative agreement,” meaning the parties have not officially ratified it. However, the agreement is on a new six-year contract which is currently subject to changes. The president of the PMA, James McKenna, notes that the contract “recognizes the heroic efforts and personal sacrifices of the ILWU workforce in keeping our ports operating during the pandemic and supply chain crisis.” The ILWU president said that the ILWU will now return to entirely focusing on West Coast port operations. The cooperation between the PMA and ILWA is vital with the peak season approaching soon.
The Peak Season
The peak season in shipping is the busiest time for international cargo movement when the demand is the highest. From mid-August to near Thanksgiving, many industries experience a high amount of orders, meaning a greater volume of shipments moved. The number of vessels importing containers into West Coast ports has already risen, similar to pre-covid levels. Los Angeles and Long Beach ports had 58 ships en route on Monday compared to 46 a month prior. A deal reached between the ILWU and PMA becomes gradually important as more cargo starts to be brought in. A shutdown of some of the biggest ports in the U.S. can impact a higher amount of supply chains.
As West Coast ports return to normal operations, businesses that ship internationally benefit from fewer disruptions. This is especially true with the peak and holiday seasons approaching rapidly. A way to ensure your shipment is successful is by hiring a logistics company to handle the process. Logistics companies coordinate your goods’ movement and take over other parts of your supply chain. Having extra services can be beneficial in getting and retaining customers as well as growing your business. Contact A1 Worldwide Logistics at 305-821-8995 to learn about our solutions for helping you navigate the global shipping industry.
