Concern rising over US West Coast labor pact

Supply chain investments shifting to US East and Gulf coasts, according to shipper lobbyist

Uncertainty caused by almost eight months without a labor contract on the U.S. West Coast is resulting in investment decisions that could alter supply chains and end up costing the ocean carriers customers, according to a shipper lobbyist.

“We’re seeing some investments being made at East and Gulf Coast ports due to one factor — the uncertainty of what’s going to happen” with [West Coast labor],” said Peter Friedmann, executive director of the Agriculture Transportation Coalition (AgTC).

Speaking Global Supply Chain Week, Friedmann said a strike by the International Longshore and Warehouse Union or a lockout by the employers is always a possibility given that provisions preventing those events do not exist without a contract in place.

“We’re pleased there has not been disruption, and I don’t expect a major disruption on the West Coast,” he said. “But bit by bit this uncertainty continues. Investment decisions have to be made, capital is being raised, and it is going to be deployed where there’s less uncertainty.