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West coast strike risk grows as no-strike clause lapses
来源：shippingazette 编辑：编辑部 发布：2023/02/16 13:48:08
A NO-STRIKE clause in the old US west coast union deal lapsed in June when the contract's three-year extension came to an end, making a full-blown strike a greater risk, reports Hellenic Shipping News Worldwide.
If the two sides fail to reach a new labour agreement, the repercussions could be far-reaching, said the report. Shipping delays, disruption of the supply chain, and increases in the cost of shipping could all be the result of a strike.
The ILWU (International Longshore and Warehouse Union) has previously gone on strike, which resulted in the west coast ports being closed for 10 days, disrupting trade flows and costing southern California's economy an estimated US$8 billion.
This also resulted in ships waiting for more than a week before they can enter the port, causing a heavy delay for shippers.
In addition, Asian exports diverting their shipments to the east coast experience longer transit times. The amount of time it takes for an average shipment to reach the west coast from China is 25 days while it takes 38 days to reach the east coast.
If the two sides fail to reach a new labour agreement, the repercussions could be far-reaching, said the report. Shipping delays, disruption of the supply chain, and increases in the cost of shipping could all be the result of a strike.
The ILWU (International Longshore and Warehouse Union) has previously gone on strike, which resulted in the west coast ports being closed for 10 days, disrupting trade flows and costing southern California's economy an estimated US$8 billion.
This also resulted in ships waiting for more than a week before they can enter the port, causing a heavy delay for shippers.
In addition, Asian exports diverting their shipments to the east coast experience longer transit times. The amount of time it takes for an average shipment to reach the west coast from China is 25 days while it takes 38 days to reach the east coast.