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IFPSA Reports Dockworkers Strike May Affect High Point Shipments

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The worst has happened. The ILWU (dock workers) workers slowed the pace of work, leaving jobs unmanned and forcing the PMA (shipping lines & employers) to close ports on the West Coast. Containers destined to High Point, NC for the October market are directly affected by this action, since this is the last week containers could make the rail connection for delivery via mini land bridge to High Point. Containers destined to the October market on the all water ships are unaffected by this action. However, if the west coast ports remain closed, serious pressure would be put upon the (already full) all water ships to the east coast. There may be a brief window of opportunity to get trucks under west coast containers that are now on the ground, should the ports open before October 8, 2002. During the past thirty six hours, the ILWU has: 1) Walked out of a mediation meeting with PMA (the employers – steamship lines and terminal operators). 2) Take the critical issue of port automation "off the bargaining table". 3) Refused mediation with the FMCS (Federal Mediation and Conciliation Service). IFPSA represents furniture manufacturers, retailers and wholesale distributors in their effort to provide streamlined global logistics. IFPSA membership is heavily dependent on ocean transportation. On October 1, we polled our membership and other manufacturers and found that 92.6% have agreed that President Bush should now take action to re-open West Coast ports. Such action would include forcing ILWU to return to work under section 178 of the Taft Hartley Act. On behalf of our membership, IFPSA has sent a letter to President Bush today, recommending that he immediately issue a Presidential Injunction under the Taft HartleyAct, forcing ILWU to return to work. If such action is taken immediately, ocean containers could be delivered on time for the October furniture market. IFPSA will report to you soonest as there is breaking news.