A labor dispute at East, Gulf coast ports is bringing more cargo to LA, Long Beach
Dockworkers on the East and Gulf coasts could strike as early as Oct. 1 if a contract agreement isn't reached, pushing even more cargo to the West Coast, experts say.
Companies have already begun diverting cargo from ports on the East and Gulf coasts as contract negotiations between the dockworkers’ union and their employers continue.
With a contract set to expire Sept. 30 and the threat of a strike looming, West Coast ports, particularly Long Beach and Los Angeles, stand to see further cargo increases, experts say.
“Cargo owners will start diversifying their cargo way ahead of time, prospectively,” said Mike Jacob, president of the Pacific Merchant Shipping Association, adding that cargo has already been diverted to LA and Long Beach, as is evident by the record July both ports posted.
“You just don’t want to put all your eggs in one basket,” he said. “There’s just so much uncertainty out there.”
