The port of LOS ANGELES and LONG BEACH shut down for 24 hours from April 6th to 7th due to a mass absence of the majority of workers. The Labor Union and their employers at these ports had been involved in strained negotiations for months.
On the day of the shutdown, exporters of agricultural goods were affected. The Agricultural Transport Coalition (AgTC) had 10 trucks turned away on Thursday night, which forced them to store the containers in a nearby yard and incur a cost of $20,000. This delay also resulted in international sales losses. Peter Friedmann, Executive Director of the AgTC, has stated that thousands of containers are experiencing similar losses.
The shutdown is expected to widen the gap between the West Coast ports and major retailers who have increasingly preferred the East and Gulf Coasts for their transports. Retailers have been migrating to these regions since mid-2022 due to fears of labor disruptions in West Coast ports. According to independent shipping analyst John McCown, the East Coast ports have outperformed those on the West Coast for 21 consecutive months, as of February.
Even though now the work has resumed, there has been no contract settlement between the PMA and the Union. This does little to assuage retailer fears as there could be more labor disputes on the horizon.
The unprecedented event in the history of this port’s labor disputes has confirmed the fears of retailers who were hedging their bets by switching to East and Gulf Coast ports. Some experts believe that this event could be the final straw for retailers, with Friedmann stating that perhaps the port will not regain its lost share.
The opinions expressed herein are the author’s and not necessarily those of News2Sea.
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