The National Association of Manufacturers on Wednesday urged President Joe Biden to intervene in the West Coast port labor negotiations, help resolve disputes and assist both sides in finalizing a deal.
“In light of current events and the dramatic impact of port closures, your leadership and intervention are needed,” NAM President and CEO Jay Timmons said in a letter to the president and Transportation Secretary Pete Buttigieg.
The letter comes after all of the nation’s top West Coast ports experienced either slowdowns or terminal closures over the past week, partly due to an ongoing dispute between longshore workers and their employers. The International Longshore and Warehouse Union and the Pacific Maritime Association, which represent the two parties in the dispute, have been negotiating a new contract since May 2022.
Even a short-term shut down of the ports of Los Angeles and Long Beach — two of the nation’s three largest ports — would be devastating for the economy, according to the letter.
“In June of last year, an NAM-led economic analysis found that a short-term shutdown of operations at the Ports of Los Angeles/Long Beach, the busiest on the West Coast, could result in the loss of more than $500 million of economic activity for every day of closure and put at risk more than 40,000 jobs,” Timmons said.
The June analysis, which was conducted by Inforum Economics, stipulates those figures are based on the impact of a 15-day closure of the San Pedro Bay ports. So far, port closures have been limited to either a few terminals, or a few days at a time.
The study also found any port stoppage could impact the broader economy. If freight flows are aggravated, ripple effects could include export loss, import delays, higher costs and reduced purchasing power for consumers.
“This ongoing work stoppage will exacerbate inflation and lead to dramatic economic consequences across all industrial and consumer product sectors,” said Timmons.
