Workers want raises. Shippers want robots.

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Workers want raises. Shippers want robots. The supply chain hinges on reaching a deal
By Sam Dean Staff Writer
June 5, 2022 5 AM PT

https://www.latimes.com/business/story/ ... ing-a-deal

also at

https://news.yahoo.com/workers-want-rai ... 49124.html

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The immediate future of the global supply chain rests on a bargaining table in San Francisco, where the union representing all West Coast dockworkers is hashing out a new contract with the assembled bosses of maritime shipping.

The current contract, which covers the International Longshore and Warehouse Union’s more than 22,000 workers at the 29 ports dotting the Pacific coast of the U.S., is set to expire July 1.

At stake is the continuing flow of goods into the country, after two years of disruptions to the supply chain from pandemic lockdowns, material shortages, soaring fuel prices and the occasional giant ship getting stuck in the Suez Canal. Forty percent of all U.S. maritime imports pass through the West Coast ports, with more than 30% of all containerized imports arriving at the Ports of Los Angeles and Long Beach, which together make up the nation’s largest port complex.
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The backdrop of the negotiations is starkly distinct from earlier rounds. In 2002 and 2015, the shipping companies were facing either low profits or outright losses, as a glut of new megasize ships kept freight rates and shipping revenue low.

But the last two years have brought financial bonanzas for ocean shipping companies, with the industry as a whole posting more than $150 billion in profits in 2021. One of the industry leaders, A.P. Moller-Maersk, had the most profitable year of any company in Danish history, with $18.7 billion in profits — a trend that the shipper has continued into 2022, with a $6.8 billion reported profit in the first quarter alone.

All the while, total imports from Asia to the U.S. West Coast have increased over the years, giving the workers of the ILWU more power over their crucial point in the global flow of goods. A surge in import demand led to a historic backup at the L.A. port complex over the last year, with more than 100 gargantuan container ships idling offshore waiting to berth at certain times during the holiday season. That number has since declined to 30 ships waiting to be unloaded, but as the labor negotiations unfold this summer, supply chain experts are bracing for a new round of shipping whiplash.
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