ILA strike could cause congestion at West Coast ports
Even shippers not reliant on ports served by the ILA can be affected.
in the NewsU.S.-NAFTA trade is up for sixth straight month, reports BTS AAR reports annual U.S. carload and intermodal gains for week ending June 17 Digital Issue: The Current State of Third-Party Logistics Services New JDA survey finds missing link to omni-channel success for manufacturers and retailers FTR report makes the case for Twin 33-foot trailers in the LTL sector More News
While shippers using East and Gulf Coast ports brace for the imminent strike of ILA dockworkers, the West Coast shipping community is also expressing concern.
According to Oakland, California-based Devine Intermodal, shippers may be facing port congestion and vessel delays. That means more rotation changes and rail embargoes.
Furthermore, analysts noted, shippers may be slapped with a substantial “strike surcharge” imposed by the carriers.
Shippers are advised to scrutinize their contracts, as some include information on assessments made on this basis. Even shippers not reliant on ports served by the ILA can be affected.
West Coast shippers are still recovering from the The 8-day strike staged by International Longshore and Warehouse Union Local 63 Office Clerical Unit (“OCU”) against terminals at the Port of Los Angeles and Port of Long Beach last November.
United States Maritime Alliance (USMX) and the ILA have been in a protracted battle over the payment of container royalties, which are charges based on the weight of cargo received at each port. Carriers have been insisting that these variable charges be fixed, as they represent a cost that can not be passed on to shippers.
The ILA maintains that these charges are part of their compensation.
About the AuthorPatrick Burnson, Executive Editor Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
Subscribe to Logistics Management Magazine!Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!
2017 Rail/Intermodal Roundtable: Volume stable, business steady Cross-Border Logistics: NAFTA tune-up time View More From this Issue