Cargo Routed Away from West Coast Ports as Labor Union Contracts Expire

The labor union contracts expired at 5:00pm today.

• Massive wage increases, the result of inflation, are demanded by the unions and the White House is likely to get involved (if they are not already).
• The Biden administration actually benefits from a port stoppage as imports are a deduction to GDP and the U.S. economy is presumably on the "zero" growth bubble.

Shippers are routing cargo away from the West Coast to avoid potential labor-related slowdowns

• This is driving up their costs and contributing to backups at ports in New York/New Jersey, Savannah and Houston
• The last West Coast port labor contract negotiation broke down in 2015 after nine months of talks

Biden meets with the ILWU and the PMA

• Any disruptions at Pacific Coast ports that handle almost 40% of imports to the United States could send transportation costs even higher, exacerbating pressure on a softening economy that is sinking Biden's approval ratings.
• A labor union stoppage would be bad for the economy although statistically good for Biden

 

https://theconservativetreehouse.com/blog/2022/07/01/cargo-routed-away-from-west-coast-ports-as-labor-union-contracts-expire/