Pressure mounts on shippers, union to settle U.S. West Coast ports dispute

Wed Feb 18, 2015 10:09pm EST
 
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By Steve Gorman

LOS ANGELES (Reuters) - Two U.S. Cabinet secretaries joined congressional leaders, three governors and a big-city mayor on Wednesday in pushing shipping lines and the dockworkers' union to settle a contract dispute that has led to months of turmoil and cargo backups at 29 West Coast ports.

Labor Secretary Tom Perez and Commerce Secretary Penny Pritzker weighed in as emissaries of President Barack Obama, who has come under rising political pressure to intervene in a conflict that has reverberated through the trans-Pacific commercial supply chain and could, by some estimates, cost the U.S. economy billions of dollars.

Worsening cargo congestion that the union and shippers blame on each other has slowed freight traffic since October at the ports, which handle nearly half of all U.S. maritime trade and more than 70 percent of the country's imports from Asia.

More recently, the shipping companies have sharply curtailed operations at the terminals, suspending the loading and unloading of cargo vessels for night shifts, holidays and weekends at the five busiest ports.

Work has continued around the clock in the dockyards, rail yards and terminal gates for most of the ports. Some smaller ports remained open to nighttime vessel operations as well.

The union and shipping companies each accuse the other side of instigating the disruptions to gain leverage in contract negotiations that have dragged on for nine months, appearing to hit a roadblock in the last two weeks.

ARBITRATION CITED IN SNAGGED TALKS   Continued...

 
Freighters and cargo containers sit idle at the Ports of Long Beach and Los Angeles as a back-log of over 30 container ships sit anchored outside the Port in Los Angeles, California, February 18, 2015.   REUTERS/Bob Riha, Jr.