Trade shifts east as West Coast port negotiations continue

July 9, 2022

Home » Trade shifts east as West Coast port negotiations continue
Ports along the East and Gulf Coasts are handling more cargo volume as importers divert shipments from the West Coast amid ongoing dockworker contract negotiations. A contract between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) expired last week, but both sides continue to talk, saying they want to avoid a strike or work slowdown that would further stress a U.S. economy plagued by inflation, record-high energy costs, and supply chain disruptions. Although West Coast ports are operating as usual, the lack of a contract has shippers worried that that could change at any time, and trade is already shifting as a result. Ships are backed up from New York to Savannah, according to data from logistics software provider project44, which showed 34 ships waiting at Savannah as of July 6. The tech firm also said that combined average container capacity for New York and Savannah was 83% higher year-over-year in June, due primarily to rerouted ....

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