What East and Gulf Coast port strikes mean for the Port of LA – NBC Los Angeles

Longshore workers, nearly 45,000 of them from northern Maine to southern Texas, have removed their hard hats to take a tough stance as they walk the picket line.

But the strikes have not had a direct impact on the West Coast, including the Port of LA – at least not yet.

Ports in California, Oregon, Washington, Hawaii and British Columbia are instead unionized in the International Longshore and Warehouse Union (ILWU). The ILWU is not expected to implement a similar pause. Last year, the company ratified its final six-year contract, which received 75% overall approval from workers.

The possible long-term effects on the West Coast are still unclear. In an interview with CNBC on Tuesday morning, Gene Seroka, executive director of the Port of Los Angeles, said several importers had “partially” shifted some of their allocations to the twin ports of LA, the busiest container port in North America, and Long Beach.

Seroka said the ports are prepared in case the strike forces a diversion of shipments from East and Gulf Coast ports to Southern California.

Longshoremen with the International Longshoremen's Association began picketing early Tuesday after the ILA and the US Maritime Alliance failed to reach an agreement on new contracts.

“The underlying U.S. economy remains strong,” Seroka said on CNBC. “These orders that come in from retailers and manufacturers typically start 90 to 100 days before the freight gets here to the West Coast. These numbers continue to be strong.”

“For about a year and a half, people locally have been a little concerned about the protracted labor negotiations and have told me that in the last few months they have been shipping some of their allocations here to Los Angeles and Long Beach.”

Seroka also said that Southern California ports are currently at 80 percent effective capacity and that they “still have room to grow.” There is no residue, he said.

CNBC reported that sectors hit hardest by the strike include auto parts, clothing, home furnishings and sporting goods.

According to NBC News, the work stoppage is expected to cost the U.S. economy between hundreds of millions and $4.5 billion per day.

“If it's a relatively short strike and both sides can come back to the table and negotiate that contract and get workers back to work, they can catch up pretty quickly,” Seroka said. “I'm more concerned about the small and medium-sized businesses that didn't necessarily have the resources to move inventory or were overly prepared for this situation.”

Around $34 billion worth of cargo is currently on its way to ports on the East Coast. Even a one-day strike could lead to almost a week of traffic jams. If the strike lasts two weeks, the congestion could extend into 2025, which would have a significant impact on the upcoming holiday season.