Dive Brief:
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Although negotiations between dockworkers and West Coast port operators are thought to be promising, they have gone past their July 1 deadline. Now they've been delayed and complicated even further by other developments.
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That has spurred retailers to take no chances, bringing in holiday merchandise ahead of schedule and diverting operations to the East Coast. Container volumes at U.S. ports have had their highest monthly container volumes in five years at least, according to the National Retail Federation.
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Complicating the negotiations somewhat is a strike by independent truck drivers at the Los Angeles and Long Beach ports, which together handle nearly half of all U.S. cargo and are the main portals for Asian imports. Talks have been delayed because the union had to deal with negotiations with Pacific Northwest grain-terminal operators.
Dive Insight:
The timing of complicated workforce matters at West Coast ports couldn’t be worse. Delays in the port negotiations and the trucker strikes at two major ports are threatening the movement of major retailers' inventories, just when the retailers' need for holiday goods is looming.
