ILA strike could cause congestion at West Coast ports

Even shippers not reliant on ports served by the ILA can be affected.

By ·

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 Author

Patrick 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!

Article Topics

Ocean Cargo · Ocean Freight · Ports · All Topics
Latest Whitepaper
Identify Cost Savings with Real-Time Visibility
To offset the impact of late shipments, unreported delays and detention, shippers are increasingly requiring 100 percent visibility into the location and status of their freight.
Download Today!
From the August 2017 Logistics Management Magazine Issue
Which carriers, third-party logistics providers, and North American ports have crossed the service excellence finish line ahead of their competitors? Our readers have cast their votes, and now it’s time to introduce this year’s winners of the coveted Quest for Quality Awards.
BMW Takes the Inland Road to Efficiency
Global Logistics: No Shortcuts to Security
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...