West Coast Cargo Processing Slows Down Following Worker Disruptions

Shipping containers are unloaded from a ship at the Port of Los Angeles complex, in Los Angeles, Calif., on April 7, 2021. Lucy Nicholson/Reuters

Cargo-processing operations at U.S. West Coast ports have been affected following disruptions by workers as they negotiate new contracts.

West Coast port dockworkers belonging to the International Longshoremen and Warehouse Union (ILWU) continued their “coordinated work action to disrupt operations” for the fourth day on Monday, according to a June 5 statement from the Pacific Maritime Association (PMA), which represents shipping industry employers on the Pacific Coast. Worker actions have “slowed operations at key marine terminals at the ports of Los Angeles and Long Beach and elsewhere on the West Coast, including the ports of Oakland and Seattle.”

“Union leaders are implementing many familiar disruption tactics from their job action playbook, including refusing to dispatch workers to marine terminals, slowing operations, and making unfounded health and safety claims.”

The PMA and ILWU have been negotiating a new contract since May 10. On Friday, the union had said that it remains committed to negotiating a good contract for its workers. ILWU represents 22,000 workers at 29 ports on the West Coast.

“It’s important to understand that West Coast dockworkers kept the economy going during the pandemic and lost their lives doing so,” said ILWU International president Willie Adams, according to a June 3 tweet.

“We aren’t going to settle for an economic package that doesn’t recognize the heroic efforts and personal sacrifices of the ILWU workforce that lifted the shipping industry to record profits.”

Harmful for Ports

According to the PMA, ILWU workers’ action since June 2 have forced retailers, manufacturers, and other shippers to shift cargo away from the West Coast to other ports in the Gulf and Atlantic coasts. “Much of the diverted cargo may never return to the West Coast,” the PMA said.

West Coast ports traditionally used to handle the bulk of the American trade, which was especially true during the COVID-19 pandemic.

During the pandemic, many ships were stuck at seas off the coast of California for weeks on end, which made shippers worry whether the West Coast is capable of handling large cargo volumes. Some of the volume has now shifted to the East Coast and Gulf Coast ports.

The PMA warned that cargo diversion will eliminate jobs not only at the docks but beyond as well, affecting truck drivers, warehouse workers, and thousands of other people whose livelihoods are dependent on port operations.

The organization cited a study by maritime economist Dr. John Martin which found that 95,957 jobs relied directly on the ports of Los Angeles and Long Beach in 2021. “ILWU job actions drive business and jobs away to other parts of the country, and further erode confidence in West Coast ports. Too much is at stake for this harmful disruption to continue.”

Complaint About Worker Wages

In its June 3 tweet, the ILWU pointed out that PMA member carriers and terminal operators made “historic profits of $510 billion” during the COVID-19 pandemic, with profits even jumping by 1,000 percent in some cases. Even as shipping volumes return to normal this year, PMA members have “continued to post revenues that far exceed pre-pandemic times by billions of dollars.”

During the pandemic, ILWU workers “risked and lost their lives” to ensure that grocery shelves were stocked, essential medical supplies reached hospitals, and consumer goods reached people, it said.

“Despite this fact, from pre-pandemic levels through 2022, the percentage of ILWU wages and benefits continued to drop compared to PMA rising revenues.” The previous agreement had expired on July 1, 2022.

The National Retail Federation (NRF) has called on the Biden administration to intervene in the ILWU-PMA negotiations, pointing out that thousands of retailers and businesses depend on smooth operations at ports to deliver goods to consumers.

“As we enter the peak shipping season for the holidays, these additional disruptions will force retailers and other important shipping partners to continue to shift cargo away from the West Coast ports until a new labor contract is established,” said David French, vice president of government relations at the NRF, according to a June 5 press release.

“It is imperative that the parties return to the negotiating table. We urge the administration to mediate to ensure the parties quickly finalize a new contract without additional disruptions.”

Port Shutdowns

Multiple ports on the West Coast have shut down some of their terminals due to ILWU’s disruptions. In a June 5 statement, Mario Cordero, Executive Director of Port of Long Beach, said that though the port was operating on Monday, two of its container terminals remained closed for the day shift.

Speaking to CNBC, ITS Logistics said that its truckers were turned away at the Port of Los Angeles by terminal operator Fenix Marine Services during the first shift on Monday.

“Navigating the ports on the entire West Coast over the last four days has been extremely frustrating for us and our clients,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics.

“If it were not for updates from our drivers and our visibility software applications, we would not have even known about terminal closures Friday, throughout the weekend, and into today. Terminal announcements were severely lagging at best if they were issued at all, and announcements from the ILWU were misleading.”

The Pacific Container Terminal at the Los Angeles Port announced on Monday that they would remain closed during the dayside shift on Tuesday. The Los Angeles Port is America’s busiest port.