Shipping containers are seen at a terminal inside the Port of Oakland.
Carlos Barea | Reuters
West Coast ports are closing as unionized workers “didn’t show up” after talks with port management collapsed.
The Port of Oakland was closed Friday morning due to a shortage of labor at the terminals, and the shutdown is expected to last at least until Saturday. A source with knowledge of the situation told CNBC that port closures are expected to spread across the West Coast due to a lack of adequate workforces as workers protest wage negotiations during contract negotiations with port management.
Port of Oakland’s two marine terminals — the largest, SSA Terminal and TraPac Terminal — were closed as of Friday morning, Port of Oakland spokesman Robert Bernardo said. Most imports and exports are handled through these terminals, he said.
While the actions taken by the workers are not a formal strike, sources told CNBC that other West Coast ports are also expected to shut down as unionized workers refuse to report for duty. Operations at Los Angeles port hubs are also reportedly shutting down, including Fenix Marine, APL Terminals and Hueneme port. The situation remains fluid.
The shutdowns came as activity at West Coast ports picked up again after dwindling to East Coast ports amid concerns about an unstable labor situation.
At the Port of Oakland, total container throughput has increased for the second straight month, and port officials are optimistic about the growth. It is the country’s eighth-largest port and imports everything from Australian wine and meat to South Korean aluminum, and clothing, electronics and Furniture from China.
“Given the increased business we’ve seen over the past few months, we’re optimistic about cargo volumes passing through Auckland in the second half of 2023,” said Port of Oakland Maritime Director Bryan Brandes. The number of ocean freight services offered by the Port of Oakland is expected to increase in the coming months.”
“Oakland is an important port for US agricultural exporters,” said Peter Friedmann, executive director of the Agricultural Transportation Coalition (AgTC). “Friday is a big day for agricultural exports.”
Web cameras show no truck activity at Port of Oakland, where lack of workers shuts terminal operations
Ports and unions have become involved in contract negotiations over the past year, adding to tensions over port operations.
On April 20, the Pacific Maritime Association, which represents ports, and the International Federation of Terminals and Warehouses announced that they had reached a preliminary agreement on certain key issues, but gave no further information.
People familiar with the negotiations told CNBC at the time that it represented “significant progress.” The previous agreement included maintenance of health benefits. Known issues that still need to be addressed include wages as well as security, healthcare, automation and pension benefits.
CNBC reached out to PMA, which represents port administration. PMA did not immediately respond to a request for comment.
In a statement Friday, the ILWU said rank-and-file workers had taken the initiative to “voice their grievances” in the ongoing “hard fight” with the port administration. The ILWU said cargo workers at the port “are still working,” but port sources told CNBC that overall worker numbers are insufficient to continue port operations. The ILWU statement did not specifically mention wages, but referred to “basic requirements,” including health and safety, and the $500 billion in profits ocean carriers and terminal operators have made over the past two years.
The Port of Oakland was last shut down in early November when hundreds of staff left amid a pay dispute.
Any port closures create backups that affect truck drivers picking up and unloading cargo.
The truckers were also shut down over California’s AB 5 legislation that classifies truckers as employees, and lasted five days, but it took two months to clear up. ILWU did not cross that picket line.
At the Port of Oakland, more than 2,100 trucks pass through the terminal each day, but no trucks are expected through Saturday because there is not enough labor to service the trucks.