CALIFORNIA: The US Port of Oakland in California cargo volume declined ‘dramatically’ in January due to the ongoing labor dispute affecting West Coast ports, Oakland official said.
The Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) have been negotiating a new contract since last May, with severe congestion seen in many ports over the last three months.
The Port of Oakland said in a statement that its containerized imports were down 39% from January 2014, while exports shrunk 26%, and total volume was off 32%.
“With a decline in productivity and a breakdown in vessel schedules at all U.S. West Coast ports, cargo volumes are far from normal,” Port of Oakland maritime director John Driscoll said.
The Port official said importers had begun diverting containerized cargo to gateways outside the U.S. West Coast. These include ports in Canada, Mexico and the U.S. East Coast.
It added that exporters had been challenged in shipping cargo to overseas markets because of vessel delays and diversions.
Recently the Chilean Fruit Exporters Association (ASOEX) said port delays were putting US$45 million worth of fruit that was currently on two ships sitting on the water at risk.
U.S. President Obama also recently intervened in the conflict between the PMA and ILWU, sending Secretary of Labor Thomas E. Perez to help resolve the situation.
