An ongoing labor dispute embroiling ports across the West Coast has taken a bite out of agricultural trade across California’s Central Valley. Some in the food and logistics industry fear a permanent loss of overseas business.
Since July, the Pacific Maritime Association and the International Longshore and Warehouse Union have entered an increasingly bitter dispute over a labor contract. Delays have slowed the movement of freight and a complete shutdown is looking increasingly likely.
California’s agricultural export business has been hit hard. Devine Intermodal, which handles cargoes for Farmer’s Rice Cooperative, Blue Diamond Growers and others, primarily to the Port of Oakland, plans to cut hours for 25 workers beginning Friday. That’s about a quarter of the workforce.
California exporters could face penalties from overseas shippers, or lose business entirely as importers find other foreign suppliers for agricultural products and other goods.