The recent labour action carried out by the International Longshore and Warehouse Union (ILWU) on the US West Coast caught the attention of shipping analysts and stakeholders around the globe. Analyst Lars Jensen described the development as “a slow-motion train wreck,” adding that "it does not take long for a substantial queue of container vessels be built up outside California," given the large number of TEU the port handles every day.

According to the US shipping news agency JOC, all international container terminals at the Los Angeles-Long Beach port complex were shut down for two consecutive shifts on 6 and 7 April. Luckily, the closure did not drag on further, but the ILWU continued to stall operations on Monday, 10 April, at most of the marine terminals by slowing the dispatch of workers.

Strikes and walkouts at one of the biggest US ports and one of the key international maritime hubs have the potential to cause serious disruption across the global supply chain. While normal operations resumed at the ports of Los Angeles and Long Beach, the latest developments boosted concern of “a nationwide supply chain mess,” as described by Bloomberg.

Contract-related disputes have been on the table between the union and the Pacific Maritime Association (PMA) for almost a year now. In a report published in 2022, the National Association of Manufacturers estimated the potential loss caused by an operational halt at nearly USD 500 million per day. It added that a 15-day strike could lead to 41,000 job losses.

Concerns were also raised by the National Retail Federation, which called for intervention by the White House, saying, “It is essential that the ongoing labour negotiations between the International Longshore and Warehouse Union and the Pacific Maritime Association are resolved immediately.”

According to the latest seaexplorer data, the labour action did not significantly impact the average vessel waiting time at Los Angeles – Long Beach ports. The 7-day average waiting time jumped by nearly 24 hours after the closure of the terminals but stopped at 1.36 days on 9 April. 

Seattle Terimal-5 jurisdictional issue surfaces again

One of the issues that had a role in stalling the contract negotiations on the West Coast was the disagreement between the largest terminal in Seattle Port and the ILWU. The main issue, in this case, is that both the ILWU and the SSA Marine – operators of Seattle’s T-5 terminal – claim jurisdiction over approximately 25 port mechanics jobs.

The dispute was earlier raised to the US National Labour Relations Board (NLRB), which recently ruled that the “machinist jobs at a Seattle marine terminal do not belong to the ILWU,” as reported by JOC. As part of the talks on the West Coast, this particular issue stalled the overall talks in the region. Sources told JOC, “The process of moving the T-5 matter through the courts could easily take a year or two.”

The union said it plans to appeal the NLRB’s decision. Cam Williams, the ILWU coast committeeman, told JOC, “The ILWU is confident that the NLRB decision, which cannot go into effect without court approval, will on appeal be overturned as legally wrong.”