CBP Issues Procedures for Possible Disruption

Business groups, including the Auto Care Association, are urging longshoremen and their employers to avoid a dispute that could cripple ports along the West Coast and affect billions of dollars in commerce. Negotiations began in May to replace a six-year pact between the Pacific Maritime Association and the International Longshore and Warehouse Union, which represents about 20,000 dock workers at 29 West Coast ports, that expires June 30. The ports account for about half of all U.S. maritime trade and more than 70 percent of imports from Asia.

As the negotiations are private, there is little news to report on progress of the negotiations. The contract will likely expire on June 30 and there will likely be some slowdowns around July 4. The Auto Care Association has been working with a coalition urging the parties to conclude an agreement on a new contract before the current contract expires. While we hope that disruptions will be avoided, Auto Care Association members should be prepared for all possibilities and make contingency plans in case of any supply chain disruptions. Last week, U.S. Customs and Border Protection issued procedures for a possible West Coast trade disruption that could cause major delays and diversions of vessel cargo arriving and departing from West Coast ports. The procedures are available here.

The Auto Care Association will continue to keep a close eye on the contract negotiations and will provide updates as they become available (though they might be rare, due to the blackout agreed to by the parties). Please contact Andres Castrillon at andres.castrillon@autocare.org with any questions regarding this issue.

Link to Auto Care Association Capital Report: Capital Report