ImportIndustry News

ILWU-PMA Talks lead to Diversions

Diversions creating delays in shipments from Asia to US East Coast

By: Corianne Egan | August 01 2014 

Diversions from the West Coast to avoid longshore labor negotiations are creating delays of up to two to three weeks for some ocean cargo moving from Asia to the U.S. East Coast, according to a freight forwarder.

When contract rates are lower, most of the time one of two things can happen. First, carriers may choose not to honor the contract rates and quote higher spot rates. Or lower-priced cargo can sit at the port in Asia as higher-priced cargo gets loaded on the ship, because carriers are trying to maximize profit for every voyage when capacity is tight.

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