Once a labor deal is reached between the ILWU and West Coast reports, logistic managers are split about how much trade they would do in the area.
A CNBC supply chain survey of 41 logistic managers the week of Dec. 12-19 at companies that are members of the National Retail Federation, the American Apparel and Footwear Association, the Council Of Supply Chain Management Professionals, the Pacific Coast Council, the Agriculture Transportation Coalition and the Coalition Of New England Companies For Trade, was released last week.
While 30% said they were unsure about bringing trade back, 18% said they would bring back 10% of their diverted trade, another 12% surveyed said they would bring back 20% of the trade they moved away, and another 12% said they would bring back 60% of their diverted trade, according to an article on CNCB.
When asked is their company was diverting trade, 49% said no, while 40% said yes and 11% didn't know.
In answer to why they are moving trade away from the West Coast, they cited a variety of reasons:
- ILWU strict( 52%)
- California's AB5 "Gig Worker" law (40%)
- Rail Delays (40%)
As companies moved to the East Coast ITS Logistics notes that the volume of freight is now double that of the West Coast.
As to when things will return to normal, the CNBC survey found that logistic managers don't see that happening until 2024 or later.
