Docks dispute pushed work to East Coast ports
LOS ANGELES — Months of congestion at West Coast ports — the result of a labor dispute and other logistical problems — led to major shifts in U. S. trade patterns.
Import data for the first two months of this year show that the volume of container cargo coming into West Coast ports plummeted nearly 18 percent compared with the same period last year, according to trade research firm Zepol. At the same time, the amount of cargo coming into East and Gulf coast ports grew by 10 percent.
The numbers put a precise face on what retailers, farmers and manufacturers have known for months: Persistent delays at West Coast ports have forced businesses to find workarounds for their shipments.
“It’s a financial and a timing issue,” said Paul Rasmussen, chief executive of Zepol. “These companies are doing whatever they can to get their products in.”
Retailers have complained for months about delays at the ports of Los Angeles and Long Beach. There are many causes: A surge in imports, the arrival of massive container ships that overwhelm docks with cargo and shortages of truck trailers needed to haul containers out of the port.
Alongside the infrastructure issues, shipping companies and dockworkers with the International Longshore and Warehouse Union were embroiled in a months- long contract dispute that was resolved last month.
Shipping companies halted the unloading of ships at night beginning in January, and also dramatically cut shifts during the President’s Day weekend last month. The companies said the cutbacks were meant to prevent overcrowding on already congested docks, while the union argued it was part of a negotiating tactic.