Retail Group Urges ILWU, Pacific Ports to Settle Contract Extension

The International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association should begin contract negotiations now in order to keep cargo flowing through West Coast ports, said National Retail Federation (NRF) President Matthew Shay in an April 14 letter to the two parties. The ILWU contract at the 29 containerized ports in California, Oregon and Washington that make up the Pacific Maritime Association expires on June 30.

Even if a contract is negotiated prior to expiration, perceived risk of a lockout will fuel uncertainty and deter use of the port, said the letter. “The contract negotiations come at a critical time as peak season shipments for the Christmas and holiday season will begin in July,” said the letter. “A disruption this summer will impact those retailers who import goods, but it will also impact NRF members who export goods to their overseas locations.” The 2002 ILWU lockout at west coast ports lasted 10 days and significantly disrupted supply chains in the manufacturing, retail, agriculture and other sectors, said the letter.

“A lengthy and contentious contract negotiation could jeopardize the ability for the U.S. West Coast ports to continue to benefit from growing freight volumes and continue to keep discretionary cargo,” said the letter. “There is even more competition now from other ports -- especially with the expected completion of the Panama Canal expansion.” That expansion is expected to be completed by the end of 2015 (see 14031711).