A LA Port strike is looming as port security guards have voted to authorize a strike, raising growing concerns over year-end supply chain disruptions at the nation’s largest logistics gateways, the Port of LA and the Port of Long Beach.
According to the Wall Street Journal and other sources on the 28th, about 250 security guards belonging to Local 26 of the International Longshore and Warehouse Union (ILWU) passed the strike authorization vote. With the labor and management failing to find common ground despite mediation by the Federal Mediation and Conciliation Service, a strike could begin if negotiations are not settled by 5 p.m. on the 1st of next month.
The security guards have continued negotiations while extending their contract after the previous labor agreement expired in July of last year, but failed to narrow differences over wages and working conditions.
While the number of striking participants accounts for only about 2% of the ILWU members at the two ports, the ripple effect is expected to be substantial. According to the Pacific Maritime Association (PMA), the terminals where they work handle 85% of Long Beach Port’s cargo volume and 33% of LA Port’s.
Management expects six core container terminals to be affected. In particular, if other dockworkers join in picket lines and refuse to work, it could disrupt everything from vessel unloading to container intake and release.
Both ports are already experiencing severe cargo congestion due to delayed rail transport. In September, the combined cargo volume of the two ports reached a record high of about 2.04 million TEUs. As of the 26th, containers awaiting rail transport reached 35,688 units, with 10,562 of them stranded at the ports for over nine days.
The Korean logistics industry is already struggling with rail transport delays. Sun Mina, vice president of AMS Logistics, stated, “Due to BNSF railway overload, cargo pickup was denied on the 27th and 28th following three days last week,” adding, “We have sent advance notices to clients as the burden of demurrage charges could escalate just like during the pandemic.”
Adding to the concern, the Vincent Thomas Bridge, a major access route to the Port of LA, is scheduled to close for 16 months starting on the 7th of next month due to maintenance work, heightening anxieties in the logistics sector.
Vice President Sun noted, “The key issue is not the security guard strike itself, but whether other dockworkers will join in solidarity,” adding, “If even some terminals are shut down, logistics disruptions will be inevitable.” She also conveyed, “We received a response from the Port of LA authority that they plan to respond by opening one or two additional gates in the event of a strike.”
