Survey Cites Negative Impact of West Coast Port Delays

U.S. manufacturing growth slowed in December, with continuing delays at West Coast ports being cited as a contributing factor, according to the Institute for Supply Management (ISM). Comments from companies surveyed indicated a widespread negative impact on imported materials shipment due to the West Coast dock slowdown, the ISM said.

Textile mills, manufacturers and fabricated metal producers reported that they are air freighting parts from Japan and Asia to support production while parts and other materials ordered earlier sit at the docks.

According to the ISM, economic activity in the manufacturing sector expanded in December for the 19th consecutive month, and the overall economy grew for the 67th consecutive month. But the pace of growth slowed in December, owing partly to the port disruption.

The delays began late last summer at the ports of Los Angeles and Long Beach, caused by chassis and driver shortages, big ship offloading surges and higher volumes due to the resurgent U.S. economy. The delays worsened and spread up the coast following what port employers say is a labor disruption by members of the International Longshore and Warehouse Union. Employers and the ILWU have been negotiating since May but have yet to agree to a new contract to replace the prior contract that expired on July 1. S