Against the backdrop of significant global economic anxiety due to the evolving crisis in Ukraine and mounting challenges to America’s already stressed supply chain, industry leaders representing 49 associations, including NAUMD, sent a letter to the White House last week urging the administration for “early and persistent” engagement in the impending contract negotiations between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU).
The U.S. west coast ports account for over 44% of nationwide container port traffic. With negotiations yet to formally begin ahead of the contract’s July 1st expiration, uncertainty is already disrupting freight strategies and operations on the ground.
“Pandemic-related disruptions in the nation’s supply chain have been costly and inconvenient,” said Brian Dodge, Retail Industry Leaders Association, president. “Allowing a work slowdown or a shutdown to impact operations would amount to a self-inflicted wound, compounding congestion and leading to even higher costs on everyday products for consumers.”
“Previous labor disputes at the ports cost the U.S. economy upwards of $1 to $2 billion per day,” said Steve Lamar, president and CEO, American Apparel & Footwear Association. “To say the stakes are even higher today is an extreme understatement, as even a short slowdown or shutdown will disrupt already fragile supply chains and compound inflationary pressure.”
The signed industry leaders are urging the Biden-Harris Administration to encourage and, if necessary, convene the parties to facilitate negotiations:
“These efforts will benefit American importers and exporters, the tens of millions of workers they employ, and the hundreds of millions of consumers they serve. Swift action and consistent attention to this matter can safeguard our shared economic gains and protect the progress your Administration has made in addressing supply chain disruption and port congestion.”
The full letter can be viewed here.
