Port of LA/LB Labor Disruption and ILWU Update

On Wednesday, Gene Seroka, the Port of Los Angeles Executive Director, announced, “there has been widespread concern over the ongoing West Coast labor contract negotiations and those concerns intensified last week.” Last Thursday and Friday, many workers did not work their normal shift due to a union meeting and workers wanting to spend time with their families for the religious holiday. This effectively shut down both ports during that time. As of today, both ports are operating normally and there are no signs of a potential strike.

Following last week’s labor disruption, many are asking what the status is of the International Longshore and Warehouse Union contract negotiations. The labor contract between the ILWU, representing port workers, and the Pacific Maritime Association (PMA), representing terminals, expired on July 1, 2022. Despite the happenings of last week, there is yet to be any breakthrough in reaching a new agreement. Tensions have been visibly rising on the West Coast, especially after the PMA accused the local ILWU of withholding labor.

Fortunately, due to the low volumes passing through the ports at this time, the result of last week’s stoppage was small. Concerns, however, over increasing stoppages has resulted in a drop in confidence in the West Coast ports.

(Chart: FreightWaves based on data from Port of Los Angeles)

 

Please know that Noatum is closely monitoring the status of these negotiations and will provide prompt and accurate updates as received.

If you have any questions, please contact your local Noatum Logistics representative.