A West Coast port workers union and a West Coast port terminals and ocean carriers association have concluded extended negotiations on a labor contract and announced a tentative agreement on a new six-year contract, according to an update shared by EPA. Although this agreement is subject to ratification by both parties, which could take a few months to complete, it appears to have prevented significant supply chain impacts.
The International Longshore and Warehouse Union (ILWU), which represents more than 22,000 West Coast port workers, and the Pacific Maritime Association (PMA), which represents the West Coast port terminals and ocean carriers, have been negotiating since May 2022. An agreement prior to the peak import season – ahead of the holidays later this year – will avert potential delays of imports of raw materials and other products that could have impacted water and wastewater system supply chains. Volumes to the West Coast have been seasonally rising, in line with pre-pandemic patterns. The Port of Los Angeles handled 409,150 twenty-foot equivalent units of imports in May, up 19 percent from April and 64 percent from the recent low in March. Port of Los Angeles Executive Gene Seroka said the port is operating at about 70 percent capacity. Of the 30 percent shortfall, he said half was due to macroeconomic issues and half was due to cargo switched to East Coast and Gulf Coast ports as a result of labor concerns at West Coast ports. Read the update at EPA and an associated article at FreightWaves.
To help prepare for potential, future supply chain disruptions in general, WaterISAC recommends utilities review EPA's Supply Chain Resilience Guide for Water and Wastewater Utilities. Additionally, WaterISAC encourages utilities to share any impacts they experience. In addition to the state primacy agency (and any other entity required by regulations), utilities can report a supply chain disruption to EPA at SupplyChainSupport@epa.gov. WaterISAC also encourages its members to report supply chain disruptions by emailing analyst@waterisac.org or calling (866)H2O-ISAC.
