Port Labor Talks Pose New Complication for Supply Chain

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Port Labor Talks Pose New Complication for Supply Chain
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West Coast dockworkers and cargo companies are set to begin contract talks this week: “If anything further disrupts the supply chain it will be devastating.”

Top news and in-depth analysis on the world of logistics, from supply chain to transport and technology.“If anything further disrupts the supply chain it will be devastating,” said Jim McKenna, who as head of the Pacific Maritime Association will lead labor talks on behalf of employers including some of the world’s largest ocean shipping lines.

Importers of everything from furniture to toys and U.S. exporters of agricultural goods and other products are bracing for potential fallout, not just because 40% of U.S. seaborne imports flow through the 29 ports affected by the talks, but also because past negotiations have led to severe disruptions.

Dockworkers are expected to demand higher wages, better benefits and limits to the automation of cargo-handling facilities. Industry officials and observers say the union enters the negotiations in a stronger position than usual.

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