West coast ports from Los Angeles to Seattle faced slowdowns on Monday, a continuation of job actions by dockworkers that began Thursday, leaving goods stranded and flows disrupted, as the union and the port owners continue to wrangle over renewing a contract that expired in July.
As container ships piled up at the blocked Suez Canal for six days, an already serious issue of port congestion has grown worse, rippling down to longer delays on consumer orders as inventories deplete with goods hung up in transit. Some chokepoints have seen easing but shippers continue to scramble and costs rise.
Retail imports based on cargo volume at the nation’s major retail container ports is expected to decline year-over-year for the next few months but the first half of the year should still amount to a 4.5% increase compared with the same period last year, according to the National Retail Federation.
At the same time, import volumes are returning to West Coast ports after the labor issues that plagued the first half of 2015. Busy East Coast ports like New York and New Jersey saw large spikes in the double digits last year, as shippers sought alternate means to ensure product delivery, even if it meant significantly longer transit times.
While cargo is flowing back to West coast ports after labor issues were settled, it’s growing faster at East and Gulf ports as shippers weigh their options.
Macys’ inventory levels continue to be negatively impacted as a result of protracted labor issues that tied up shipments at 29 West Coast ports for months.
The intractable West coast port labor dispute may lead to shutdowns costing the U.S. economy $1.9 billion per day, but where’s my Turkish backgammon board?
The West Coast port shutdown will continue through Monday as the two parties appear no closer to a resolution, as many call on President Obama to step in.
Barring a major breakthrough, a crippling West Coast port shutdown could happen in 5-10 days, costing the economy $2 billion per day, according to the NRF.