As the 5:00pm (PST) deadline for expiration of the labor contract between the International Longshoreman and Warehouseman's Union (ILWU) and the Pacific Maritime Association (PMA, the negotiating body for carriers serving seven major U.S. West Coast ports) approaches, there is no progress to report.

Face-to-face negotiations are scheduled to resume at 3:00pm (PST) today. Sources believe both sides are committed to continue negotiating beyond the 5:00pm deadline. However, potential for labor disruptions (such as picket lines, work slowdowns) or a lockout loom large after the deadline.

One step we can all take is to write or e-mail our U.S. Senator or House Representative and ask him or her to urge the parties to stay at the bargaining table until they reach a resolution. The economy is hardly in a position to suffer a strike or work slowdown.

At this point, inbound carriers are expected to drop anchor and wait for a definitive turn of events. Passage through the Panama Canal is not an option for large post panamax vessels. Smaller vessels are expected to divert to ports on the west coast of Canada and Mexico.

For exporters, it’s also a matter of wait and see. Some outbound shippers decided two weeks ago to move containers by truck or train to the Port of Houston and to East Coast ports. At this point, available space is both tight and at a premium on ships departing from these locales. That said, we are working to assist clients whose time-definite needs necessitate an outbound move from the East Coast or Houston.

As you plan for contingencies, please note that in the event of a strike, the Federal government is expected to step in after 10 days, by mandate under the Taft-Hartley Act. Taft-Hartley provides for a court-ordered injunction and an 80-day cooling off period. In effect, both sides would be ordered back to work and to resume negotiations guided by non-binding arbitration during the 80-day period.

As the situation changes we will make every attempt to keep you apprised. Please contact your local BDP office to address questions specific to how this possible work stoppage could impact your international freight movements

Best Regards,

Thank you.

Wayne Schmidt
President,
BDP Transport


Bob Stewart
Director, Import Operations
BDP Transport
E-Mail:bstewart@bdpnet.com