Dive Brief:

• Many observers, including worried retailers, are beginning to panic that the labor negotiations at West Coast ports are likely to break down and bring the work slowdown to a full stop. Some inventories are already being affected by shipping delays, caused by a variety of issues at those ports, including the labor issues. 

• President Barack Obama expressed confidence in the collective bargaining process last week, effectively saying his administration wouldn’t step in, as some high-profile retail CEOs have begun to advocate.

• Meanwhile, the Federal Maritime Commission is looking into heavy port congestion fees that some carriers have levied on stalled shipments. Some carriers have suspended such fees, according to the FMC, after concerns were raised.

Dive Insight:

White House spokesman Frank Benenati told Bloomberg that the administration is keeping an eye on the West Coast negotiations, which are getting on retailers’ last nerve. Inventories are piling up, the holidays are coming, and the disruption to many retailers’ supply chain is beginning to affect the bottom line. Benenati noted that East Coast and Gulf Coast ports last year experienced a long, drawn-out negotiation that was eventually resolved despite the qualms.

“And just as the two sides in that case were able to resolve their differences through the time-tested process of collective bargaining, we’re confident that management and labor at the West Coast ports can do the same,” Benenati said.