Slowdown of International Longshore and Warehouse Union Workforce Slows Ground Port Productivity to a Crawl
Introduction
– The “slow and go” pace of the International Longshore and Warehouse Union workforce at West Coast ports has slowed ground port productivity to a crawl.
– Supply chain intelligence company MarineTraffic data shows a “significant surge” in the average number of containers waiting outside of port limits.
– The value of the combined 86,381 containers floating off the ports of Oakland, Los Angeles, and Long Beach reached $5.2 billion, based on a $61,000 value per container, and customs data.
Rising Container Wait Times
– At the Port of Oakland, during the week of June 5, the average TEUs (ton equivalent units) waiting off port limits rose to 35,153 from 25,266.
– At the Port of Los Angeles and Long Beach, California, the average TEUs waiting off port limits rose to 51,228 from 21,297 the previous week.
– The Pacific Maritime Association, which negotiates on behalf of the ports, is not allowed in the union hall to see if the terminal orders are indeed being requested.
Impact on Logistics Managers and Shippers
– Logistics managers with knowledge of the way the union rank-and-file displeased with unresolved issues in negotiations with port management are influencing work shifts tell AsumeTech the slowdown can be attributed to skilled labor not showing up for work.
– Truck and container backups are causing shippers to become increasingly concerned about the potential need to find alternative supply chain options.
Potential Consequences
– Shippers in search of more reliable and resilient supply chains now consider their options, says Peter Sand, chief analyst at Xeneta.
– During Covid, the supply chain breakdowns saw the pileup of vessels waiting off the West Coast influence trade to move to the Gulf and East Coast Ports.
– Supply chain costs have come down considerably on a global basis, according to the Federal Reserve’s data, though they have been mentioned by Fed Chair Jerome Powell as one inflationary trigger the central bank has no control over.
Conclusion
– The “slow and go” pace of the International Longshore and Warehouse Union workforce at West Coast ports is having a significant impact on ground port productivity and container wait times.
– Shippers are becoming increasingly concerned about the potential need to find alternative supply chain options, which could result in extra costs.
