Dive Brief:

• Some major retailers' inventories at West Coast ports that built up during work slowdowns last year are still being whittled down, leading to fewer shipments ahead of the holidays, the Wall Street Journal reports..

• A months-long labor dispute last year wasn’t settled until February, and the resulting inventory buildups are also hitting some retailers’ bottom lines as they work through them.

• Many retailers are holding off on new purchases as well. 

Dive Insight:

Although there was never a strike last year, the work slowdowns at West Coast ports continue to be felt by many larger retailers, impacting their bottom lines and their plans for the holidays. That means that the normal surge in shipping ahead of the holidays has been muted. 

The issue has shown up in quarterly reports from several retailers, including Nike and Pier 1, and in Quiksilver’s bankruptcy filings. 

Discount retailers like those run by TJX Cos. could benefit as retailers unload some of their excess inventory to make way for newer styles. But the dispute revealed some fundamental problems between shippers and port workers that could surface again, though not until the current contract expires in another five years. 

"The West Coast port negotiation process is an epic failure on all sides,” writes Kate Vitasek in Forbes, “and unless the parties commit to establish a foundation for a strong and trusting working relationship, history is sure to repeat itself in the future.”