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Container Gridlock along America’s West Coast

In Announcements Delays Freight Industrial Action News Posted February 16, 2015 at 4:02 pm
By Magellan Logistics

Magellan-United-States-West-Coast-Transport-Truck-Backlog

United-States-west-coast-Container-gridlock-Backlog

Source: Monica Almeida, The New York Times

Cargo containers are banked up at Los Angeles and Long Beach Ports, and along the West Coast of the United States, due to a labour dispute between an association of the major shipowners of the West Coast and the union of longshoremen who unload those ships. The negotiations cover operations at 29 ports, including the largest in Southern California; Oakland in Northern California; and the Puget Sound. Collectively they bring in half the United States’ imported cargo.

The congestion is said to be the “worst-ever on record, according to one shipping analyst (Source: Jane Wells, CNBC)

Magellan-United-States-West-Coast-Ships-Backlogged

Source: Tyler Durden, www.zerohedge.com

Magellan-United-States-West-Coast-Transport-Truck-Backlog

Source: Tyler Durden, www.zerohedge.com

The New York Times reports that “American retailers, the U.S. Chamber of Commerce and agricultural exporters said they have already lost hundreds of millions of dollars because of mounting port congestion, with spare parts and consumer products from Asia not arriving on time and exports like oranges and apples left to rot.”

There is grave concern that failure to reach an agreement between the disputing parties will lead to devastating consequences for the US retail industry, and logistical nightmares for American exporters, manufacturers and retailers dependant on an efficient supply chain, of which the effects are already being felt.

Out of concern for the economic consequences of further delay, President Obama has taken action and requested, Thomas E.Perez, the secretary of labor, to travel to California to “meet with the parties to urge them to resolve their dispute quickly at the bargaining table,” according to a statement issued by Eric Schultz, a White House spokesman. Mr. Perez will try to mediate a settlement between the two parties. (Source: Erik Eckholm, The New York Times)

Pending a resolution, exporters and importers into Australia and New Zealand, should expect delays for goods going in and coming out of the West Coast.

For more information relating to the labour dispute:

http://www.nytimes.com/2015/02/15/us/politics/obama-to-intervene-in-dispute-at-west-coast-ports.html?_r=0

http://www.cnbc.com/id/102384907#.

http://www.zerohedge.com/news/2015-02-12/catastrophic-shutdown-americas-supply-chain-begins-stunning-photos-west-coast-port-c

 

For more information relating to your import or export shipments, please contact our Customer Service or Customs teams on 1300 651 888.

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