(p. A15) Global supply chains are buckling, driving up prices, creating shortages and frustrating consumers.
. . .
One problem is productivity. In Asia, ships are worked 24/7, or 168 hours a week, compared with 16 hours a day, or only 112 hours a week, at Los Angeles-Long Beach. Terminal gates used by truckers to deliver and receive seaborne containers operate only 88 hours a week, vs. 168 in Asia. For larger ships, it takes 24 seconds on average to move a container at the Chinese ports of Shanghai, Qingdao and Yantian, vs. 48 seconds at Los Angeles, according to IHS Markit port-performance data.
. . .
A decades-long history of toxic labor-management relations has led to huge cost increases that discourage operators from expanding work hours, limit their ability to automate terminals, and end in avoidable delays during contract negotiations. Many companies won’t soon forget six months of costly delays at West Coast ports during contract negotiations with the International Longshore and Warehouse Union in 2014 and 2015. More than 30 container ships were backed up at anchor off the ports during that episode. Companies will be closely watching the next round of negotiations in 2022.
There is no sign that the labor-management paradigm will change, and a Democratic administration is unlikely to challenge longshoremen’s unions to make compromises.
For the full commentary see:
(Note: ellipses added.)
(Note: the online version of the commentary has the date June 2, 2021, and has the same title as the print version.)