The International Longshore & Warehouse Union (ILWU) and West Coast employers, led by the Pacific Maritime Association (PMA), will be back at the negotiating table next year, making shippers nervous leading up to the July 1, 2022, contract expiration.
In late November, the PMA made a formal request for a one-year contract extension, citing on-going supply chain disruptions; however, the offer was rejected, and the ILWU confirmed they will proceed to renegotiate the contract in the coming months.
Shippers have a right to be concerned; previous contract negotiations that began in 2014 led to over six months of significant port disruptions until an agreement was finally reached in 2015. With West Coast cargo already strained under port congestion, equipment imbalance issues and intense government pressure to restore cargo flow, the trade community is concerned history will repeat itself.
Both sides have tried to reassure the industry that discussions do not mean and have not always led to disruption in the past. However, with significant parts of the contract up for review, such as port automation, there will be even more attention on U.S. West Coast ports starting in March. The right to automate cargo handling will once again be a tense and expensive issue in the next seven-year contract.
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