Following weeks of negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union, the two organizations have finally reached a tentative five-year agreement. The tentative agreement will allow large backlogs of cargo containers along the West Coast to unload their shipments.
In Seattle ports specifically, the backlog will clear within three weeks, the Puget Sound Business Journal reported. However, the West Coast ports and the global supply chain are far from operating at normal activity. Containers shipping from the United States back to foreign ports will take time. The backup caused by the lack of containers in China and Southeast Asia is significant. Analysts are predicting that it will still be at least eight to 12 weeks before the supply chain will normalize, at the very minimum. This will be a welcome return to normal activity, as some industries lost millions of dollars because of the labor dispute. These losses were particularly felt in the agricultural business, which had shipments rotting in the ports.
As the situation continues to unfold, AMMEX is well stocked with inventory to support our clients and prospects. With that said, delays are still possible, as negotiations, which shut down ports several times, will not be complete until the union ratifies the agreement, an endeavor that could take a few months, according to the source. The tentative agreement is a sign of positive movement, but unpredictable changes in the situation could still occur.
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