Port strike: Can West Coast ports absorb East and Gulf Coast import volumes?
Port of Los Angeles executive director Gene Seroka discusses the key issues of the impending ports strike on Cavuto: Coast to Coast.
A potential strike by unionized dockworkers could begin Tuesday at East and Gulf Coast ports, raising questions about whether West Coast ports are a viable alternative destination for unloading cargoes.
The International Longshoremen's Association (ILA), which represents 45,000 dockworkers, and the U.S. Maritime Alliance (USMX) that represents port employers are at an impasse in negotiations over the union's demands for compensation and protection from automation. The union's current six-year contract expires Monday night, raising the prospect of the ILA's first strike since 1977.
With time dwindling for the two sides to reach an agreement that avoids a work stoppage, the possibility of a strike by dockworkers at 36 East and Gulf Coast seaports could put about half of the country's import volume at a standstill — raising questions about whether shipments can be diverted to the West Coast.
Douglas Kent, EVP of corporate and strategic alliances at the Association for Supply Chain Management (ASCM), told FOX Business in an interview that while it makes sense to consider alternative destinations to mitigate risk, «The West Coast ports can't handle an additional 50% of goods coming through there.»
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Dockworkers with the ILA could go on strike if a last minute deal isn't reached by midnight on Sept. 30. (Sam Wolfe/Bloomberg via Getty Images / Getty Images)
«We have severe passage constraints through the Panama Canal because of the drought, so even that isn't always the answer,» Kent said. «That's an additional week-plus
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