The Longshoreman Slowdown Wreaking Havoc On the U.S.

The dynamics of international and domestic shipping can be negatively affected when it comes to labor disputes. Unfortunately for U.S. consumers and companies, the West Coast has erupted with problems like these in the form of work stoppages and slowdowns at major ports. It’s important for businesses to understand this current event and learn how they can navigate around the challenges it presents. 

Why the Slowdown is Happening

According to the Wall Street Journal (WSJ), longshoremen working in container ports from Los Angeles and Long Beach, and all the way to the Port of Seattle, have begun to slow or withhold their labor. The cause is due to the ongoing contract negotiations between the Pacific Maritime Association (PMA), who represent the companies running the ocean terminals, and the International Longshore and Warehouse Union (ILWU) representing dockworkers. 

 

The discussions over this contract will impact over 22,000 dockworkers across 29 ports from California to Washington State. Negations between the PMA and ILWU have been ongoing for over a year, with tentative deals being made on various topics like benefits and automation. However, contract discussions over wages for dockworkers have halted any further progress.  

How This Affects Businesses and Consumers

Dockworkers at ocean ports are responsible for unloading containers off ships and onto trucks. When they don’t show up or when they slow their labor, problems in the supply chain begin to occur.

This creates the following issues:

• Warehouses waiting for new products
• Retailers suffering from stockouts
• Consumers being unable to find the goods they need

The current longshoreman slowdown will essentially cause the same concerns that were plaguing the U.S. supply chain during the height of the COVID-19 epidemic. When warehouses don’t receive new products, businesses can’t restock shelves at their stores. This results in customers not being able to buy the products they require.

The Expenses That Businesses Face

Since the offloading of containers has slowed or, in some locations, stopped altogether, products belonging to businesses are stuck at ports throughout the West Coast. 

This has led to increased service costs for numerous companies, such as:

• Demurrage charges 
• Detention fees
• Storage charges
• Rerouting costs 

Besides the charges and fees that companies will have to pay, they’ll also be losing out on possible sales on new products that are trapped at a port. Fortunately, there are a few ways that companies can overcome the challenges presented by the longshoreman slowdown.  

What Companies Can Do To Overcome the Longshoreman Slowdown

Businesses seeking to avoid the issues brought on by West Coast longshoreman withholding or slowing their labor have a few options to explore. 

These include:

• International air transport
• Intermodal shipping
• Port diversification
• Look to Canada and Mexico
• Drayage services

International air transport is one great way to overcome congestion at ocean terminals. While this option is more expensive than ocean transport and is unable to carry a large portion of goods, it’s much faster and bypasses any issues occurring at a port. 

Intermodal shipping is another option that businesses should explore. Using a rail to transport cargo part of the way is much cheaper than using a truck for the whole journey. This can also offset the costs that businesses have already incurred from the slowdown. 

Diversifying ports can be an excellent option for companies. While the longshoreman slowdown is affecting ocean terminals on the West Coast, the same isn’t true for the East Coast. Businesses could try sourcing products from suppliers that export through terminals in that part of the country. 

Searching for new suppliers from Canada and Mexico is a viable plan as well. These countries are two of the U.S.’s top five trading partners. There is also an established Free Trade Agreement with these countries that can make importing goods from them cheaper. 

Best of all, shipments from Canada and Mexico can arrive via truck or rail rather than by ship. This helps businesses avoid ocean ports altogether. Additionally, business can bring their goods into the U.S. via air transport as well. 

Drayage services is another useful way to bypass the longshoreman slowdown. It can be used to move a container of freight from the port to a nearby warehouse. Utilizing drayage allows business to get their freight unstuck from a congested port faster than usual. 

How R+L Global Logistics Can Help

R+L Global Logistics can assist you through the longshoreman slowdown in a variety of ways. Our international team can help you import goods into the U.S. by plane. They also can provide support with all the regulatory processes of bringing goods in goods from Canada and Mexico.

Additionally, we offer transload services that can be used to move your container from rail to truck, or the other way around, if you want to take advantage of intermodal transport. R+L Global also provides drayage services as another way of getting cargo out of a port and through the supply chain quickly. 

Finally, you can explore other port options with us as your strategic partner. We offer our services from the West Coast to the East Coast and at the U.S.’s north and south borders. Contact our team at (877) 510-9133 if you’re ready to overcome the longshoreman slowdown or if you have any questions.