Updated Status of Contract Negotiation between ILWU and PMA
Dear Valued Customer,
USPTI would like to give you some latest update on the new contract negotiation between ILWU and PMA. Although both parties have not come to an agreement after the contract expired on July 1st, 2022, there will not be any strike or slow down.
Latest Joint Statement:
“While there will be no contract extension, cargo will keep moving, and normal operations will continue at the ports until an agreement can be reached between the PMA and the ILWU,” the two parties said in a joint statement on July 1st.
“Both sides understand the strategic importance of the ports to the local, regional and US economies, and are mindful of the need to finalize a new coast-wide contract as soon as possible to ensure continuing confidence in the West Coast,” the ILWU and PMA said.
The economic stakes are high:
July and August are typically busy months for imports from Asia as retailers stock up on back-to-school and holiday goods. The peak has arrived even earlier this year, with companies looking to preempt disruptions by ordering these products even further ahead.
As these hubs enter peak shipping season, resulting in stress on the supply chain and increased inflation, “supply chain stakeholders remain concerned about the potential for disruption, especially without a contract or an extension in place.
Following above, wary shippers are not taking any chances. They are routing cargo away from the West Coast to avoid potential labor-related slowdowns, particularly at the nation's busiest seaport complex at Los Angeles/Long Beach. That is driving up costs and contributing to backups at ports in New York/New Jersey, Savannah, and Houston. We strongly suggest you make a pre-plan as the uncertain situation now, ship as much as you can.
Above are the most updated information for you.
All of us are happy to help. USPTI team appreciate your support!