This week, a group of 49 trade association, including PPAI, sent a letter to the White House urging the administration for “early and persistent” engagement in the impending contract negotiations between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU).

The U.S. West Coast ports account for more than 44% of nationwide container port traffic. With negotiations yet to formally begin ahead of the contract’s July 1 expiration, the letter warns that uncertainty is already disrupting freight strategies and operations on the ground.

“Pandemic-related disruptions in the nation’s supply chain have been costly and inconvenient,” says Brian Dodge, president of the Retail Industry Leaders Association. “Allowing a work slowdown or a shutdown to impact operations would amount to a self-inflicted wound, compounding congestion and leading to even higher costs on everyday products for consumers.”

Steve Lamar, president and CEO of the American Apparel & Footwear Association, says, “Previous labor disputes at the ports cost the U.S. economy upwards of $1 to $2 billion per day. To say the stakes are even higher today is an extreme understatement, as even a short slowdown or shutdown will disrupt already fragile supply chains and compound inflationary pressure.”

The letter urges the Biden Administration to encourage and, if necessary, convene the parties to facilitate negotiations. It notes, “These efforts will benefit American importers and exporters, the tens of millions of workers they employ, and the hundreds of millions of consumers they serve. Swift action and consistent attention to this matter can safeguard our shared economic gains and protect the progress your Administration has made in addressing supply chain disruption and port congestion.”

The full letter can be viewed here.