Deadlocked Negotiations Threaten West Coast Ports

June 15, 2023

Stalled labor negotiations at West Coast Ports threaten to worsen an alarming backlog of shipments, prompting an urgent solution.

Negotiations between the International Longshore and Warehouse Union (ILWU) and the Maritime Association have reached a standstill, plunging the West Coast ports of the United States into a critical situation. The impasse revolves around contentious issues of wages and job protection, leaving the ports in a state of uncertainty and raising concerns as the peak season approaches.

The current deadlock has resulted in an alarming backlog of 86,381 containers, with an approximate value of $5.2 billion, floating offshore, waiting to be unloaded. If this backlog continues to grow, we may find ourselves facing challenges similar to those experienced during the height of the pandemic.

The strain on the Western ports has been further exacerbated by concurrent strikes on the Canadian coast and low water levels in the Panama Canal. With alternative shipping routes being impractical, the urgency for a compromise between the parties becomes even more paramount.

In light of the seriousness of the situation, the U.S. Chamber of Commerce sent an urgent appeal to President Biden, calling for an appointment of a mediator to help facilitate a resolution. As of June 12th, acting Labor Secretary Julie Su has stepped in to initiate communication between the ILWU and the Maritime Association. The outcome of these negotiations in the coming days will be crucial in determining the path forward.

As the ports brace for the upcoming peak season, the need for a swift resolution becomes increasingly urgent. The successful resolution of this labor dispute is not only vital for the thousands of workers and businesses affected but also for the stability of the economy.