NEW REPORT SHOWS ECONOMIC IMPORTANCE OF THE PORTS
Earlier today, NRF and the National Association of Manufacturers released a new reportdetailing the economic consequences of a West Coast port shutdown.
The report found that a five-day shutdown of the 30 West Coast ports would reduce GDP by $1.9 billion a day, disrupt 73,000 jobs and cost the average American household $81 in purchasing power while a 20-day shutdown would reduce GDP by $2.5 billion a day, disrupt more than 400,000 jobs and cost the average American consumer about $366 in purchasing power. The longer the shutdown or stoppage, the worse the effect.
The joint report comes at a stressful time for supply chain stakeholders – auto dealers, farmers, manufacturers, retailers, importers, wholesalers and their transportation providers – as the dockworkers and management continue to negotiate a new contract. The current contract between the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) is set to expire on June 30.
Retailers in particular are concerned about any supply chain disruption – along the ports in California, Oregon and Washington State – as they await shipments of back-to-school products and holiday merchandise. A port shutdown now could equate to delayed fall and winter shipments.
NRF and supply chain stakeholders are united in their call on the ILWU and PMA to remain at the negotiating table until a deal is sealed.
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