West Coast Shippers, Dockworkers Reach Tentative Agreement - Tire Review Magazine

West Coast Shippers, Dockworkers Reach Tentative Agreement

Shippers and dockworkers reached a tentative deal before the weekend, ending a labor dispute that has suspended the loading and unloading of freighters across 29 West Coast ports.

Normal operations at the ports resumed on Feb. 21, according to the New York Times.

“The parties have agreed to ensure there are fully operational ports up and down the West Coast,” said U.S. Labor Secretary Tom Perez, who was dispatched by the federal government to help the two parties negotiate a deal.

According to Perez, the tentative agreement is a five-year contract. Officials did not disclose the terms of the deal, which must be approved by members of the International Longshore and Warehouse Union.

The deal resolves an ongoing situation that has lasted since July 2014. The New York Times reported that it could be months until normal operations clear the ports’ backlog.

Robert McEllrath, president of the dockworkers union, James McKenna, president of the Pacific Maritime Association, released a joint statement to the Times, hailing the agreement.

“After more than nine months of negotiations, we are pleased to have reached an agreement that is good for workers and for the industry,” they said. “We are also pleased that our ports can now resume full operations.”

The disputes crippled West Coast ports, harming many businesses, including retailers.

“The congestion, slowdowns and suspensions over the last few months have had a significant economic impact on the entire supply chain and those who rely on the West Coast ports to move their goods and products around the world and throughout the country,” said Matthew Shay, president and CEO of The National Retail Federation.

During the Tire Industry Association’s recent OTR Tire Conference, several tire manufacturers noted how the slow down at the ports have affected their business.

CMA and Yokohama OTR said the slow downs have lead to 45-60 days longer fill times. BKT Tires Inc. said that it had to rely heavier on east coast ports for imports.

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