The aftermath of the West Coast port halt still hurts businesses

Ever since the long-disputed halt of the West Coast ports, the import and export businesses including apparel industries have been affected. The negotiations led to the resumption of the ports, however the industry has not completely bounced back.

“The contract talks are over, but the tentative agreement still has to be ratified and it’s going to take months to get back to normal on the West Coast,” said Jonathan Gold, Vice President for Supply Chain and Customs Policy for National Retail Federation. The West Coast labor and management have to work together in order to make the transition more efficient.

The operational problems led to an all-time-high with importing and exporting issues. March is forecasted at 1.52 million twenty-foot equivalent unit (TEU). Due to the long issues that caused halts in the ports, the number is very high. In April, the forecast is at 1.51 million TEU. Every year, the forecast is increasing, which means that any problems with the ports causes delay and issues for businesses.

In result, East Coast ports have gone up 36 percent, while West Coast ports have gone down 64 percent. The West Coast halt caused most importers to change their needs and take their business elsewhere. This is problematic for the importing and exporting business because sending ships to the East Coast instead of the West Coast is more costly and less efficient. When cargo arrives at the East Coast, it still has to be moved by rail to Midwest distribution centers. Also, the West Coast is more established with distribution centers because of their huge import/export base.

Although the West Coast is slowly adjusting to its normalcy, rates suggest that it will not be a smooth transition and it will still hurt businesses.