Pacific Maritime Association

Freight transportation, logistics, and supply chain stakeholders are breathing a collective sigh of relief today, as the long-running labor negotiations West Coast port labor quarrel has ostensibly come to an end, with the International Longshore Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) coming to terms yesterday on a six-year tentative deal.

The push for a new West Coast port labor deal continues….with no end in sight? OK, that is an exaggeration, but, yes, that is what it feels like, at times., to be sure. Not all that long ago, there were clear signs of optimism, or progress, in terms of a deal being reached between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA).

Could the possibility of a West Coast port labor deal between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) be finally inching to reality?

On April 20, the ILWU said that it has reached a tentative agreement with the PMA “on certain key issues,” adding that talks are continuing on an ongoing basis until an agreement is reached.

The potential for a West Coast port labor stoppage looked like it was turning into a reality, with various reports issued late last week stating that the International Longshore and Warehouse Union (ILWU) withheld labor at the Port of Los Angeles (POLA) and the Port of Long Beach (POLB) before returning back to work on Saturday, April 8.

A group of national industry associations, largely representing shippers and freight transportation and logistics services providers, called on President Joe Biden, in a letter, to take action, regarding the still-unresolved West Coast port labor negotiations between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA).

ILWU and PMA said that the tentative agreement is subject to agreement on the other issues in the negotiations.

Even though the current contract has expired, the ILWU and PMA said on July 1 that negotiations on a new deal will continue to move forward.

In advance of the negotiations between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA), which began this week, PMA President and CEO Jim McKenna offered up his take on what may be in store as the negotiations for a new deal progress. The current deal is set to expire at the end of June.

While the negotiations on a new contract between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) are set to begin in May, prior to the expiration of the existing deal on June 30, the ILWU’s top executive expressed optimism that a new deal will come to fruition.

In a letter to ILWU President William E. Adams and PMA Chairman and CEO James McKenna, NRF President and CEO Matthew Shay urged them to begin contract negotiations as soon as possible. Shay explained that NRF applauds the close partnership ILWU and PMA have achieved throughout the pandemic, coupled with the ability to deal with the unprecedented cargo surge over the past two years.

According to leading maritime economist John Martin, Ph.D., the broad scope and “systemic nature” of the cargo congestion that continues to hamper goods movement throughout the country, including at the Ports of Los Angeles and Long Beach.

West Coast ports’ market share has declined 19.4 percent since 2006, a concerning trajectory that puts port and logistic jobs at increasing risk, according to a new briefing paper released recently by the Pacific Merchant Shipping Association (PMSA)

At this time last year, West Coast port congestion was a speculative concern and now that shippers have seen the worst case scenario unfold, many analysts feel that Gulf and East Coast ports are ready to pull in more vessel calls at peak season this year - Is a “battle royale” waiting for the bell?

It will take several months to have the backlog cleared at the ports, despite the ILWU and the PMA reaching an agreement regarding US West Coast ports operations this past week.