12:00 am
April 8, 2015
Although the Pacific Maritime Association and the International Longshore and Warehouse Union reached a tentative deal in February (which is making its way through the approval process at the union), the effects of the slowdown reverberate.
The Tri-City Herald reports that while shipping has improved, there are still backlogs, which has affected the agricultural industry:
Some customers were lost because companies in the state weren’t able to fill the demand for frozen potato products during the port slowdown, [Dale Lathim, executive director for the Potato Growers of Washington and the United Fresh Potato Growers of Washington & Oregon] said. They are working to try to get those customers back.
And processors did end up missing out on the potential growth for this year, meaning missed opportunities for revenue.
The Washington State Potato Commission estimates the missed opportunity for frozen food processors was about $48 million for November through January.
Retailers have also been affected, and there are signs that “a cargo shift away from the West Coast is regaining steam.”
East Coast ports gained market share from the West Coast after a 10-day port employer lockout in 2002 spurred shippers to become less dependent on the latter as their gateway for imports. And it appears this shift is happening again.
In other port news, the Port of Portland may have lost all its business: In February, Hanjin Shipping Co left, “taking nearly 80 percent of the Port of Portland’s container business with it.” And now Hapag-Lloyd has stopped scheduling trips to Portland. Despite the resolution of the West Coast Ports contract issue, labor problems persist in Portland:
Categories: Categories , Economy , Transportation.The antagonism on the docks hurts more than shipping lines’ bottom lines. Port and agriculture industry officials said earlier this week that they worry other ports will become more expensive to ship out of, without Portland competing for the same business.