Terminal operation disruptions continue at the largest USWC Ports
Two terminals at the Long Beach Port and one at the Los Angeles Port were closed during the day shifts on June 5, due to concerted & disruptive work actions by the International Longshore and Warehouse Union. There is slowdown in operation in terminals at Ports of Oakland & Seattle as well.
Pacific Container Terminals at the Long Beach Port had canceled cargo operations for Tuesday’s first shift, according to a notice sent to the trucking community, citing no reason. The ILWU's coast-wide work actions since June 2 has forced retailers, manufacturers & shippers to shift their cargo from the West Coast to Atlantic & Gulf Coasts.
- As on June 6, all terminals have now resumed operations. However, we can expect to experience delays as this is an ongoing situation.
- There is a Threat of potential port strike in Canada. Members of the International Longshore and Warehouse Union in Canada are due to vote later this week on whether or not to proceed with a 72-hour walk-out at the ports of Vancouver and Prince Rupert.
- Whitehouse has asked to intervene to resolve the issue as we enter the peak shipping season for the holidays.
- As per Container Shipping Advisory, you will see some cargo diversions and rerouting, as happened last time and the many times before that. But the fact is that capacity elsewhere does not exist to handle all US west coast diverted cargo. And the drought-hit Panama Canal is also a bottleneck.
- Freight rates into the US might increase quite sharply.