Global Courant
Shipping containers at the Port of Seattle.
Patty Dom | CNBC
Labor disputes continue on the West Coast with the announcement of the closure of the Port of Seattle as the International Longshore and Warehouse Union (ILWU) refuses to send labor to the container terminals. This is reported by the Pacific Maritime Association (PMA), which represents the terminals in the ports.
West Coast ports have seen continued delays and worker interruptions all week, with an estimated $5.2 billion in trade flowing out of the ports of Los Angeles, Long Beach and Oakland.
In an emailed statement, the ILWU said the union remains committed to negotiating a contract that is “fair and equitable and represents the hard work and contributions of its members to the continued success of the multibillion-dollar shipping industry.”
The ILWU also accused the PMA of using the media to use one-sided information in an attempt to influence the process.
“Despite what you are hearing from PMA, ports on the West Coast are open as we continue to operate under our expired collective bargaining agreement,” said International President Willie Adams.
The Port of Seattle and its twin port, the Port of Tacoma, form the Northwest Seaport Alliance (NWSA). The Port of Seattle is one of the major seaports in North America that U.S. agricultural exporters rely on to ship their produce and grain. About 40% of Washington state jobs are tied to commerce.
The main trading partners were China, Japan, Vietnam, South Korea, Taiwan, Thailand, Indonesia, Malaysia, the Philippines and India in 2022.
Agriculture Transportation Coalition (AgTC), which represents ag shippers, tells CNBC that these disruptions to exporters are damaging the reputation of U.S. ag exporters as a reliable trading partner.
“When the ILWU-PMA negotiations fell through at the end of a previous contract, the Japanese Department of Agriculture wrote to our US Department of Agriculture to the effect, ‘Your ports are not working, but our cows are still eating.’ The impact of these West Coast disruptions is being felt globally,” emphasizes Peter Friedmann, AgTC Executive Director.
The top six U.S. exports according to the port’s website include apples (worth $2.185 billion), milk, ($1.209 billion), cattle (worth $801.5 million), wheat (worth $756. 8 million), potatoes, (valued at $712.4 million) and hay (valued at $601.7 million). The total value of exports in 2022 was $5.66 billion.
The NWSA is the country’s second largest gateway for refrigerated containers called “reefers.” Frozen products such as fries, meat, dairy products, apples and fish are transported in these specialized containers.
“Our agriculture cannot be on standby and cannot be stored on terminals,” says Friedmann. “We cannot continuously miss sailings and delivery obligations to foreign buyers.”
Friedmann said ag exporters, with few exceptions, don’t have the option to move from the West Coast to the East Coast and the Gulf Coast. But he warned customers, foreign buyers did.
“They’re called Argentina, Brazil, Australia, New Zealand,” Friedmann said. “We don’t want to lose these customers.”
The NWSA is also a port importer of cars with a terminal for roll-on and roll-off ships. Car imports increased by 6.5% in 2022 compared to 2021, with 172,979 units delivered. Kia and Hyundai cars use this gateway.
CNBC has reached out to the Port of Seattle and has no comment as of this writing.
