The contract that covers more than 22,000 port laborers at 29 West Coast ports expires on July 1. Walsh checks in weekly with the International Longshore and Warehouse Union ILWU and the Pacific Maritime Association PMA employer group. They tell me that we're in a good place. Walsh said that it's moving forward.
In a rare joint statement on June 14, the ILWU and the PMA said they are not planning any work stoppages or lockouts that would worsen supply chain logjams.
Earlier this month, President Joe Biden met with the two sides as he grapples with supply-chain disruption and inflation that are fuelling voter discontent ahead of key mid-term elections in November.
Walsh said there has not been any issues that have come up that have made either side concerned if port automation is a sticking point in the talks. Shippers are routing cargo away from the West Coast to avoid labor-related slowdowns, particularly at the nation's busiest seaport complex at Los Angeles Long Beach.
The change is giving those Southern California ports, which employ the lion's share of ILWU workers a chance to clear backlogs. It's also causing cargo backups at East Coast and Gulf Coast ports like New York New Jersey, Savannah and Houston.