LFAlert!
SHIPPING LINES, UNION BLAME EACH OTHER FOR WEST COAST PORT BACKUPS.
“Tension over prolonged labor talks between maritime shippers and the union representing 20,000 West Coast dockworkers has erupted in public as the two sides blamed each other for escalating cargo congestion at the two busiest U.S. container ports.” (Steve Gorman, REUTERS, November 11, 2014)
Since the backups began around mid-October the number of cargo ships kept waiting outside the twin ports of Los Angeles and Long Beach have ranged from about eight to 15 on any given day, delaying deliveries of last-minute holiday merchandise, port and retail officials said. “On a normal day, we rarely have ships waiting at anchor unless they want to be there.” said Phillip Sanfield, a spokesman for the Port of Los Angeles.
In a similar November 10, 2014 article, “West Coast port slowdown raises fears of dockworker strike or lockout”, Andrew Khouri of the LA Times states that public harmony has been shattered, raising fears that a strike or lockout could close ports up and down the coast and cause economic pain. “The risk of disruption at West Coast ports by Thanksgiving is increasing day by day,” International trade economist Jock O’Connell said. With concerns continuing about possible disruptions, slowdowns and diversions at U.S. West Coast ports, Leapfrog can only continue to make these suggestions:
- STAY INFORMED – Will there be slowdowns or a strike? We cannot make a prediction, but the indicators and potential is absolutely there. Keep current on the situation. Check out these articles that will keep you current on the situation at www.joc.com/port-news and at http://news.yahoo.com/shipping-lines as well as others that continue to report on the situation and its impact on the shipping world.
- ASSESS THE SITUATION – Realize this could have a broad impact on your bottom line and on the cost of doing business. Business could be interrupted or halted, and transport prices in the event of a crisis could increase rapidly. Please make sure you check with your freight forwarder or your logistics provider for any increased costs or other additional surcharges that may affect your exports and imports.
- PLAN AHEAD – In case of a slowdown or a strike, there will be a vast negative impact on the US economy. Although there are alternate routes, they are already full and are expected to stay that way, as shippers are clearly diverting and accelerating shipments to avoid potential impact from the negotiations. Again, communication with your freight forwarder or logistics provider is vital. Know the route of your shipments and any possible interruptions so that you can make quick monetary and logistical decisions.
- WHAT NOW? HOW CAN LEAPFROG CAN HELP? – Leapfrog Global and Document Teams want to assure you we are equipped to assist you with preparations for contingency plans in regards to your Contracts, Letters of Credit, Documentary Collections and other Export Documents that may be affected by the West Coast port slowdown. Leapfrog is continuing to monitor the situation and will contact our customers directly if we see any projects/files on hand at Leapfrog that may be affected in any way. NOT a Leapfrog Customer? Contact us, and we will be happy to assist you also. LEAPFROG LLC, Inc., where “Our business is getting you paid!”
