Monday, December 15, 2014
Top Story
NRF: U.S. West Coast port congestion delays goods up to 2 weeks
Cargo congestion at U.S. West Coast ports perpetuated delays for a third month amid industry reports Thursday of lengthy shipment delays for goods ranging from yoga apparel to apples and frozen French fries.
Goods that usually take two to three days to navigate the affected ports now have lag times of up to two weeks, according to the National Retail Federation.
The congestion has been most pronounced at the port complex of Los Angeles and Long Beach, the country’s busiest cargo hubs. Officials reported 11 ships anchored on Thursday waiting for berths to open up.
The number of freighters kept waiting outside the two ports has varied from about eight to 18 on any given day since the slowdown began there around mid-October, said port of Los Angeles spokesman Phillip Sanfield.
Other West Coast ports, including in Seattle and Tacoma in Washington State, are facing smaller scale delays.
The slowdowns have dovetailed with ongoing labor talks between 20,000 International Longshore and Warehouse Union dockworkers and the Pacific Maritime Association, representing employers at 29 West Coast ports. The latest six-year contract expired June 30.
The PMA has accused the ILWU of staging some port slowdowns to gain an edge at the bargaining table. Union officials deny organizing protest delays but admit individual dockworkers may have acted out of frustration over the pace of contract talks.
Vancouver retailer Lululemon Athletica blamed West Coast port congestion for its lower sales forecast on Thursday. The yoga-wear seller said 1 million of its garments were stuck in port, delaying shipments to stores for up to 10 days.
Exports have been hard hit as well. Washington state apple growers, who had a record harvest of 150 million cartons this year, have been thwarted in selling as much of their surplus as they wanted to Asian markets.
Fast-food giant McDonald's Corp said its Japan outlets are among that country's eateries grappling with a french-fried potato shortage blamed on port backups.
For more of the Reuters story: www.reuters.com
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