Special Memo To Clients Issue 23-008 – June 05, 2023

Labor Disruption on the West Coast

Last Thursday coastwide contract negotiations between the ILWU and the Pacific Maritime Association (PMA) reached a breakdown over wage issues. Until Thursday, negotiations had been reported as moving along well. However, negotiations took a significant turn for the worse on Thursday, resulting in a breakdown of talks. The ILWU and PMA are now reportedly far apart on wage matters and no negotiations are currently scheduled. Some of the ILWU’s locals have responded to this delay with independent actions. These selective job actions have targeted specific terminals at the West Coast ports.  

These job actions immediately shut down operations at some marine terminals in the Ports of Los Angeles and Long Beach. TTI, the largest terminal in the Port of Long Beach, announced it would be closed on Monday. Some terminals have notified drayage companies that they are already waiving demurrage and detention on containers affected by the work actions.  In Seattle-Tacoma, similar actions were pinpointed for specific terminals.  In Oakland terminal requested labor was not supplied by the Union on Friday.

However, late this morning we received reports that the Administration has been working with both parties this weekend and that they are back at the table. A few terminals in Los Angeles and Long Beach will be shut down only for the first shift, but back up for the second shift this evening. In Oakland all gates are open and in Seattle/Tacoma all gates are currently open, but work is going slowly.  The situation is fluid for the West Coast ports, but we will watch closely for any changes.