Tuesday, October 22, 2019
Hawai'i Free Press

Current Articles | Archives

Tuesday, May 10, 2016
After more than a decade of West Coast disruptions, shippers are wising up
By Michael Hansen @ 2:34 PM :: 2634 Views :: Jones Act, Labor

by Michael Hansen, Hawaii Shippers Council, May 9, 2016

The Journal of Commerce (JOC) published on May 7, 2016, a news article, “After more than a decade of West Coast disruptions, shippers are wising up.” The article reports that after the West Coast Port Shutdown, which took place from October 31, 2014 through February 21, 2016 (with backlog not cleared until August 2015), shippers (i.e., merchant cargo owners) are routing more cargo through U.S. Gulf and East Coast ports.

This is a natural reaction to the three slowdowns and outright shutdowns that occurred in 2003, 2008 and 2014/2015 and the unpredictability of the waterfront union at U.S. West Coast ports, Hawaii and Alaska, the International Longshore & Warehouse Union (ILWU).

In contrast, the waterfront union on the U.S. East and Gulf Coasts, the Great Lakes and Puerto Rico, the International Longshore Association (ILA), has not used disruption as a negotiating tactic for more than couple decades resulting in a more stable operating environment and attracting cargo from the U.S. West Coast.

Key excerpts:

The reaction of shippers to West Coast longshore labor disruption is evolving in such a way that West Coast ports have reason for concern.

In 2002, a 10-day shutdown of West Coast ports amid longshore labor contract talks came as a complete surprise to many shippers.

When the next round of contract talks took place in 2008, shippers began to wise up. The International Longshore and Warehouse Union struck along the entire West Coast on May 1 of that year and after a brief lull, subsequent disruption broke out in July and spread up and down the coast before a tentative agreement was reached in late July. For many shippers, that was all the information they needed, and the exodus began.

As the expiration of that six-year contract approached on July 1, 2014, many shippers were prepared, or at least they thought they were. Plenty of cargo was diverted to the East and Gulf coasts in the run-up to the contract expiration . . . . .

During the period from July 2015, by which point the West Coast had more or less returned to normal, to March 2016, the latest month for which import data is available, one would have expected at least some of the diverted cargo to shift back to the West Coast, that is, if those diversions were temporary.

But that isn’t what’s happening. During that period, the East Coast saw imports from Asia grow at a significantly higher rate than the West Coast, showing the East Coast continuing to gain market share in the aftermath of the 2014 to 2015 labor disruptions

After three go-rounds spanning more than a decade involving West Coast labor disruption tied to contract negotiations — and none on the East Coast — shippers have smartened up. Only one action (in my view) will positively alter their perception of the West Coast. That will be for the ILWU to renounce disruption as a tool of negotiation. No more slowdowns by locals if they don’t like what they hear coming out of the negotiations.

Their counterparts on the East Coast have all but done this and are vocal in pointing out this fact to shippers. Until the ILWU takes this action, they will see a lot less business than they otherwise would.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

808 State Update AM940

ABCDEFG Blog

ACA Signups Hawaii

ACCE

ALEC

Alliance Defending Freedom

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii

AMVETS-Hawaii

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

Conservative Forum for Hawaii

CSIS Pacific Forum

DAR Hawaii

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute

Habele.org

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Families for Educational Choice

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling

HIEC.Coop 

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube

HPACC

Hump Day Report

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

Judgepedia Hawaii

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Salvage The Rail

Save the Plastic Bag

School Choice in Hawaii

SenatorFong.com

SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT