Vessel backups are building in Los Angeles and Long Beach (LA-LB) ports amid continued illegal slowdowns by International Longshore and Warehouse Union (ILWU) workers.
The labor situation at the ports was also posing a risk to intermodal rail service in Southern California. “A spokesperson for Union Pacific Railroad (UP) told the Journal of Commerce (JOC) it temporarily paused rail service Tuesday at three marine terminals in LA-LB because freight was backing up at UP’s inland terminals.” Thankfully, those restrictions were lifted Wednesday. Burlington Northern Santa Fe (BNSF) told the JOC it had not restricted train service to Southern California.
West Coast contract negotiations are at odds on the issue of wages. “Sources told the JOC earlier this week the ILWU is demanding an almost 100% increase in the straight-time hourly wage and wants all longshore workers to be paid two overtime hours for working an eight-hour shift. The Pacific Maritime Association (PMA) is reportedly offering a low-single-digit wage increase,” sources said.
Mohawk Global will continue to monitor the situation and advise updates as they occur.
By Clarissa Chiclana