Dockworkers, Shippers Consider Extending Contract

Dockworkers and shipping companies at U.S. West Coast ports are officially considering extending the five-year contract they agreed to last year, according to Commerce Secretary Penny Pritzker, who met with the two groups in Los Angeles.

The parties have not agreed to an extension but rather agreed to consider it. Still, the news brings relief to manufacturers and retailers.

When the contract came up for renewal in mid-2014, negotiations between the International Longshore and Warehouse Union and the Pacific Maritime Association dragged on for nine months, leading to excessive delays at ports up and down the West Coast, which sent shock waves through domestic and international supply chains and caused financial losses for many retailers.

The parties reached a deal in February 2015.

Source: Wall Street Journal S