Shippers may find themselves uneasy when they realize North American dockworker unions coast to coast will be negotiating contracts at the same time.

As port disruption from labor slowdowns is common during contract negotiations, shippers may feel like they’re low on options when the International Longshore & Warehouse Union’s (ILWU’s) contract negotiations are still dragging on at West Coast ports and the International Longshoremen’s Association’s (ILA’s) contract negotiations throttle up at the East and Gulf Coast ports. After all, shippers have already been diverting cargo through East and Gulf Coast ports to avoid potential labor-related delays at West Coast ones.

Falling overall shipping demand and diverted cargo have helped mitigate disruption from labor action so far this negotiation cycle. However, if volumes rise during peak season, as they traditionally do, and ILWU negotiations are not resolved (or worse – become increasingly contentious), things could get ugly on the West Coast for shippers.

But if contract negotiations are happening at East and Gulf Coast ports with the ILA, won’t there be a similar risk for shippers there?

Find out by reading the full post in Universal Cargo’s blog