UNSETTLED labour conditions on the US east and Gulf coast ports are prompting shippers to divert cargo to the more peaceful but costly and congested Los Angeles and Long Beach, to avoid supply chain disruptions, reports London's Containerisation International.
The action comes as a "tentative agreement' reached earlier in February on a new 6-year master contract between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) has yet to be ratified by the local unions in New York-New Jersey. The agreement covers 15 ports on the US East and Gulf coasts.
CI cited one large US clothing retailer contact of New York-based analyst Scott Group and Ed Wolfe that continues to divert its imports via Los Angeles and Long Beach until the new labour contract is ratified.
The retailer is paying US$2,000 per FEU and expects costs to rise by between five and 10 per cent ($100-200 per FEU) with the peak shipping season starting in April.
The report added that San Pedro Bay ports handled five per cent more containers in January compared to the same month the year before, owing mostly to the diverted traffic.
PORTS
19 February 2013 - 20:37
Cargo diverts to USWC until USEC longshore contract is ratified by ILA
UNSETTLED labour conditions on the US east and Gulf coast ports are prompting shippers to divert cargo to the more peaceful but costly and congested Los Angeles and Long Beach.
PORTS
19 February 2013 - 20:37
Cargo diverts to USWC until USEC longshore contract is ratified by ILA
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