US port strike fears hit supply chains

[Omaha Steve]

http://www.cnbc.com/id/101844372#.

Robert Wright
Thursday, 17 Jul 2014 | 8:43 AM ET

Fears of a strike or lockout at the west coast ports that handle more than 40 per cent of all container imports to the US are disrupting businesses' supply chains, as shippers anticipating a stoppage divert cargo to Canadian ports.

Canada's largest rail network has already imposed restrictions on handling goods bound for the US after a surge in cargo diverted to the ports of Vancouver and Prince Rupert in British Columbia. Prince Rupert's container imports for June were 22 per cent up on the same month last year. Canadian National Railway (CN) took the action amid concerns that talks between US port employers and the International Longshore and Warehouse Union over a new contract might end in a strike or lockout. The port workers' existing contract expired on July 1.


Patrick T. Fallon | Bloomberg | Getty Images

The Guenther Schulte container ship departs the Port of Los Angeles in San Pedro, Calif.

The expiry of a previous six-year contract in 2002 led to a 10-day lockout and serious traffic disruption that ended only when the federal government intervened. The two sides later reached agreement in 2008 with only minor disruption.
Truck drivers at Los Angeles and Long Beach ports – which handle around a third of US container imports – went on strike last week in a separate dispute.

CN said US-bound imports through Canadian west coast ports had increased "noticeably" as shippers sought to protect their supply chains against potential industrial action.

FULL story and video at link.