TWIN FALLS, Idaho — An ongoing contract dispute between terminal operators, shipping companies and the longshoremen who load and unload cargo ships continues to hinder exports on the West Coast.
The eight-month dispute also has heavily impacted inland states that export agricultural products. And Idaho, with its $2.59 billion in exports in 2013, is not necessarily immune to the crisis.
“It’s really hard to quantify, but I know it has affected us,” said Randy Hardy, a potato grower from Oakley. “It has slowed down rail and trucks going both ways.”
When trucks can’t get unloaded at the ports, they don’t move, Hardy said.
Idaho’s famous potato industry, among others, could suffer. So could agricultural support industries, such as trucking, warehousing and processing.
“The slowdowns at the ports are wreaking havoc on previously signed contracts and price negotiations with new and current clients,” said Frank Muir, president and CEO of the Idaho Potato Commission. “The port issues could cause us to lose customers, in particular in Asia, to competition from Europe or Australia.”
The Agriculture Transport Coalition (AgTC), which calls itself the voice of agriculture in U.S. transportation policy, claims “the loss of exports by dollar are in the billions and the job losses and the loss to the family farms and businesses are unconscionable.”
Seaports are congested to the point of paralysis, according to The Associated Press. Overseas shipments are taking far longer than usual, resulting in increased costs and lost sales. Many of Idaho’s exporters ship perishable products.
“It’s a very big deal to our company,” Curt Snyder, manager of ConAgra Foods’ local Lamb Weston potato processing plant in Twin Falls, said Wednesday.
“Like many businesses in the Northwest, consistent service from the ports is vital for us to meet customer expectations, and we are working hard to manage global shipments despite the extreme congestion at the ports,” said Shelby Stoolman, an Eagle-based spokeswoman for ConAgra. “The unfortunate situation has caused disruption in delivery of goods to consumers around the world and created challenges for our business and employees.”
“The current congestion issues that we’re facing now are unprecedented,” Alex Cherin, former executive at the Port of Long Beach, recently told members of the Transportation Research Board at its annual meeting in Washington, D.C.
Hanjin, Korea’s largest shipping company, announced Tuesday it was ending service to Portland, Ore., which in 2013 ranked 14th among U.S. ports in its volume of exports. On Twitter, Bill Wyatt, Port of Portland executive director, said it was “a very sad day in Portland.” Wyatt called the port situation “an absolutely broken business model in West Coast container terminals.”
The dispute between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA), which represents terminal operators and shipping companies, began when their labor contract expired June 30. A federal mediator got involved a month ago. While some progress has been made, both sides have yet to settle arbitration and wage issues.
On Monday, union spokesman Craig Merrilees wrote in an email that its negotiators “are ready to meet immediately and work on a settlement.” The Associated Press reported that seaports had “fully reopened Monday after two days during which no ships were unloaded.”
But Dusty Standlee, president of Standlee Premium Western Forage in Eden, said the ports were not operating at full capacity, but declined to comment on the damages his company sustained because of the dispute. Standlee Hay ships 25 percent of its forage products overseas.
Pressure to reach a deal has been mounting from elected officials and others affected by the crisis.
In a letter, California’s U.S. senators pleaded with the heads of ILWU and PMA. “The stakes are far too high,” wrote Sens. Dianne Feinstein and Barbara Boxer, both Democrats. “It is imperative that you achieve an agreement immediately.”
And, with the standoff ongoing, concern is growing among Idaho officials.
“Exports are an essential part of Idaho’s economy,” said Celia Gould, director of the Idaho State Department of Agriculture, “and this disruption is a serious problem.”
Source: The Times-News (Twin Falls, Idaho)