Photo courtesy of the Port of Los Angeles
It was recently announced that there is potential for a labor-related slowdown or stoppage at U.S. ports. The union will vote on the matter at its meeting on June 30th. We caught up with Natalie Steele, owner of Steele Logistics, for a closer look at this situation.
What are some of the potential ramifications of a labor strike or slowdown at the U.S. ports?
Importers will incur a port congestion fee which will cost USD 800/1000/1125/1266 (20/40/HQ/45HQ) per container. This fee will increase the freight rate substantially. We are also coming into peak season which adds additional expense and space gets tight. Most garment companies calculate their costs on a per item basis, and those numbers could change significantly with these potential additional costs.
How likely do you think it is that labor at the ports will strike?
There is a 50/50 chance. In this situation, nobody will know until closer to the negotiating date. We just want companies to be aware ahead of time so they can arrange their shipments accordingly.
What would be the impact of a port labor strike on the action sports industry?
The delays will affect every company and especially companies that are small in the action sports industry. Manufacturers are sometimes late as it is, and an additional delay could cause cancel dates with major brands, causing lost sales.
