Dive Brief:
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West Coast ports have lost business to East Coast and Gulf Coast ports in the past several months, falling to 45% in May compared to 51.5% a year ago, according to a report from the U.S. Census Bureau released Tuesday.
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In February West Coast ports had 27.7% of the dollar value of imported goods compared to their typical 35% to 36%.
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The declines stem from actions taken by shippers importing from Asia to switch to ports on the Gulf and East coasts during the extensive labor negotiations between The International Longshore and Warehouse Union and the Pacific Maritime Association, which were resolved in February after several months.
Dive Insight:
West Coast ports usually see a higher percentage of Asian imports because they’re the quickest routes to U.S. retailers and their customers. Many of those imports, too, have a relatively high dollar value.
Although there was never a strike, the protracted labor negotiations included several work slowdowns, and the threat of a strike lingered. Once shippers began to reroute their goods, West Coast ports were almost guaranteed to lose ground to ports that were conducting more efficient and reliable business.
Still, it looks like things are on the mend, as West Coast ports have largely worked through their backlogs and are seeing steady increases each month in the dollar value of imports arriving there.
