US shipping companies and workers have reached a tentative deal that will eventually clear a cargo-handling backlog snarling food product movements at 29 West Coast ports.
A spokesperson for the International Longshore and Warehouse Union (ILWU) confirmed the deal, which ends a nine-month labour dispute. He said ratification will take “a couple of months” and added “It's up to the members."
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However, he stressed dock workers began this past weekend to clear the backlog.
US economists have said the dispute has hurt key industries and may shave 1% off of US GDP in the first quarter of the year.
“Fresh produce exporters and domestic shippers may not be out of the woods yet,” warned Wendy Fink-Weber of Western Growers, representing food producers in Arizona and California, suggesting the backlog may take “as much as 12 weeks or longer to clear."
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She added: “We anticipate transportation costs will rise. Also, many overseas buyers have and are looking to source produce from other areas, so US exporters are losing sales and losing markets."
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