LA/LB Port Strike Averted Despite Lack of Contract

Waterfront employers and the International Longshore & Warehouse Union (ILWU) did not reach a contract agreement by the 5 p.m. deadline on July 1.  Despite the lack of contract, both ILWU Labor and PMA (Pacific Maritime Association) have issued a joint-statement that there will be no strike or lockout following the contract expiration as both sides work to conclude a new contract.  Cargo will keep moving at the West Coast ports while talks will continue on important issues such as wages, safety, port jurisdiction, and medical insurance.

Despite the agreement for talks to continue, there has been a major slowdown in labor production at ports, resulting in severe congestion at LA/Long Beach port areas in particular.  Going forward, local LA/Long Beach truckers want to charge at least $50 per hour (or for partial hours) for wait times as they are facing hours of delays in picking up cargo.  Many truckers have also noted that, even after waiting for several hours, they left the port empty-handed, unable to pick up containers.  Getting empty containers out of the port for exports has also been reported as problematic.

We will continue to monitor the situation and advise you of any important updates.