U.S. shippers may opt for air cargo alternatives on West Coast
A sharp spike in air cargo demand has been evident ever since the ILWU and PMA began negotiating a new contract several months ago.
in the NewsState of Logistics 2016: Pursue mutual benefit NYK is latest ocean carrier to opt for INTTRA’s eVGM Service Peak Season dynamics continue to see changes AAR reports carload and intermodal declines for week ending July 16 As usual, the Highway Trust Fund remains underfunded and overlooked More News
When it comes to assessing the current state of the U.S. West Coast dockside labor situation, air cargo providers may be contemplating this verity: “it’s an ill wind that blows no one any good.”
A sharp spike in air cargo demand has been evident ever since the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) began negotiating a new contract several months ago.
According to Brandon Fried, executive director of the Airforwarders Association, some of that business may never return to the waterfront.
“Our shippers use all modes of transport in their operations,” he says, “but we are seeing a very significant shift back to air now…especially with components of the perishable market. The disruptions at the ports are too unstable…especially now that drayage has become part of the equation.”
As LM has reported, independent truckers and Teamster drivers have staged several demonstrations at Southern California terminals in recent days. While these are not sanctioned strikes, shippers may be unnerved by the potential consequences.
An on-again, off-again trucker actions at the Port of Vancouver also has shippers concerned.
“The air cargo industry suffered when the air controllers were fired in the 1980s,” observes Fried. “And 9/11 dealt a serious blow to this sector for a long time, too. But we’ve recovered from those setbacks and it appears that air carriers are poised to capture freight for a long time.”
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!
2016 State of Logistics: Third-party logistics 2016 State of Logistics: Ocean freight View More From this Issue