Labor slow-downs due to stalled contract talks between the ILWU and the PMA are causing delays and congestion at terminals throughout the West Coast. Seattle and Tacoma, Los Angeles/Long Beach and Vancouver have seen the following effects:
*Seattle and Tacoma – Shipping lines are not accepting any new bookings or releasing empties and are cancelling some existing bookings if no equipment has been picked up, reefers in particular. BNSF has put agri transloaders on embargo until further notice so as not to add to the current backlog.
*Los Angeles/Long Beach – Shipping lines are still accepting new bookings and releasing equipment, however, the labor slow-downs are causing major congestion issues.
*Vancouver – Vessels have been delayed sailing due to the labor issues further down the West Coast, but the shipping lines are being proactive and trying to manage the cargo to prevent further delays.
Many cold storage and truckers are announcing congestion surcharges to pick up and return containers, along with increased plug fees, etc. GRI’s that were announced will hold and there more than likely be monthly increases if the situation isn’t resolved soon. If contract talks come to a complete halt and there is a strike causing the ports to shut down, it will take 10 days to recover the schedule for every 1 day shut down.
Jo-Sak continues to monitor the situation and will provide updated information as it becomes available.