WASHINGTON: Congestion at ports on the US west coast will linger even after a simmering industrial dispute is resolved because of their inefficiency, problems with handling vast new ships and the realignment of shipping alliances, a federal regulator has warned.
Mario Cordero, chairman of the Federal Maritime Commission, which regulates shipping to and from the US, was speaking as port employers cited “gridlock” at ports in California, Oregon and Washington.
The Pacific Maritime Association says work slowdowns by members of the International Longshore and Warehouse Union since late October have created many of the problems, which have disrupted US retailers’ supplies and held up agricultural exports.
The ILWU blames under-investment by employers in equipment and the recent cancellation of night shifts at some facilities for creating the problems.
Mr Cordero warned that factors other than the dispute were big contributors to the hold-ups. The two sides have been at loggerheads since a six-year labour contract expired.The FMC last year held hearings around the US, gathering evidence about why congestion was increasing at ports.
“Let’s say there’s a settlement tomorrow on the west coast,” Mr Cordero told the FT. “We need to realise that that’s not going to eliminate the congestion problem. In the summer of 2014, [I] identified that the congestion issue was impacting our national interests.”
There were problems in many parts of the US and some European and Asian ports, Mr Cordero said.
“It’s not just the west coast, but given what has occurred there, it’s further highlighting the impact,”
