ASI Central reports that contract talks involving unionized West Coast port workers could lead to slowdowns or stoppages that ultimately delay inventory replenishment, exacerbating stock gaps.

Importers in the promotional products industry are concerned that antagonistic negotiations could cause slowdowns or work stoppages at the ports, which have already been plagued by backups in the rampant importing rush that’s occurred in the economic bounce-back from COVID-19.

Negotiations began this week between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA). ILWU represents 22,000 dockworkers that labor at 29 West Coast ports, including the ports of Los Angeles and Long Beach, through which about 40% of cargo containers imported to the U.S. flow.

Teresa Fang, vice president of supply chain at alphabroder — the second-largest supplier in promo — told ASI Media that, should slowdowns or stoppages occur, importers will scramble to reroute shipments to other ports, such as those on the East Coast. That comes with potential challenges and complications.

“East Coast port congestion will then be something to watch for as everyone makes moves to mitigate the risks on the West Coast,” said Fang.

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