ILWU Files for Chapter 11 Bankruptcy
Just before the stroke of midnight on Saturday, September 30th, 2023, the International Longshore and Warehouse Union (ILWU), which represents dockworkers at ports on the Pacific coast of the United States and Canada, filed for Chapter 11 bankruptcy protection.
The ILWU said in a statement the next morning that it "will continue to operate as usual throughout the restructuring process." The company intends to "continue honoring its employee and payroll obligations in the ordinary course of business."
A significant damage award in a protracted court battle between Portland, Oregon's ILWU Local 8 and terminal operator ICTSI Oregon served as the catalyst for the bankruptcy filing.
A jury found in November 2019 that the union had engaged in illegal actions between 2013 and 2017, including work slowdowns, stoppages, "safety gimmicks," and other coercive measures. Over the past year, concerns over port labor issues have diverted container shipping volumes to East and Gulf coast ports. Perhaps due to the litigation and settlement, those days may be behind us, as we are seeing volumes return to the west coast. Comparing the top five ports on the West Coast to the top five ports on the East and Gulf Coast in September 2023 to August 2023 reveals that the top West Coast ports saw a rise of 43.3% (up 1.4%), while the top East and Gulf Coast ports saw a decline of 42.1% (down 1.0%), of the total import container volume. The ports of Long Beach and Tacoma saw the greatest increases in volumes per below while Baltimore, MD recorded the biggest decrease in volumes last month.
Source: Descartes Datamyne™
Source: Descartes Datamyne™
Increases in September U.S. Container Import Volumes Deviate from the Customary Fall Decline
Contrary to the annual fall that often occurs in the last third of the year, the volume of containers imported into the United States in September 2023 actually increased somewhat from August 2023 levels. Both the number of imports from China and the proportion of Chinese imports in overall U.S. imports rose. For the major West Coast ports, since Descartes started tracking them, port transit times stayed relatively low despite the volume growth. However, transit times are getting longer at the main East and Gulf Coast ports. The number of U.S. container imports does not appear to be affected by the drought in Panama, but transit times have increased. The October update of the logistics indicators that Descartes is monitoring reveals notable differences from the outcomes of 2019.
With over 16 years at JMC Global, Alex possesses a wealth of expertise that positions her as a trusted authority in pricing and vendor management. Over the years, Alex has successfully worked on numerous domestic projects, including several notable ventures in Hawaii. With a versatile skill set, she has also efficiently handled air and ocean imports and exports. Alex’s unwavering commitment to excellence and meticulous attention to detail make her an invaluable asset to JMC Global as she consistently delivers results that surpass expectations in the realm of freight management.
When Alex is not working long hours to ensure successful project completion, she can be found on the soccer fields with her children or enjoying a nice glass of Sauvignon Blanc from her favorite local winery with a mystery-thriller novel.
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Sources: Descartes Datamyne™ & FreightWaves