Shipping companies, dockworkers still working on strike

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Shipping companies, dockworkers still working on strike

Shipping companies and West Coast dockworkers are still talking in an effort to prevent a strike that would cripple an already compromised economy stressed by soaring inflation and supply chain woes.

A contract that involved the companies and 22,000 dockworkers expired over the weekend.

The contract covers workers at ports from California to Washington state, handling nearly 40% of U.S. imports.

A joint statement from the International Longshore and Warehouse Union and the Pacific Maritime Association said that there would be no contract extension, but cargo will keep moving, and normal operations will continue at the ports until an agreement can be reached.

The ILWU is the union representing Pacific dockworkers, and the Pacific Maritime Association is a trade group for cargo carriers and terminal operators. Its members include such global shipping giants as Evergreen Marine and Maersk.

President Biden met with both sides in Los Angeles last month.

Both sides said last month they were not expecting any work disruptions.

More than 150 trade groups sent a letter to Biden asking his administration to work with both sides to get a deal done before the contract expired.

The peak season is nearing for imports as retailers stockpile goods for the fall holidays and back-to-school items.

One of the issues of concern in negotiations is the automation of port facilities.

There is a concern for unions on the issue that it would cost jobs. Automation will increase employment by enabling ports to move more cargo, according to the Pacific Maritime Association.

After the COVID 19 pandemic took hold in 2020, cargo traffic to ports fell drastically. It recovered and has been booming since.

Traffic jams at the twin ports of Long Beach and Los Angeles have been caused by the soaring demand for more than 20 million cargo containers in the past 2021, according to a report.

In January, some 100 ships were waiting to get into the port complex, but that total is now down to 60 or even as low as 20 at times, according to Mario Cordero, Port of Long Beach Executive Director.

The contracts are renegotiated every six years.