By Eric Huang

The International Terminals and Warehouses Union (ILWU) and the Pacific Maritime Association (PMA) announced a preliminary agreement for a new six-year contract at US West Coast ports late Wednesday, June 14. The news brings important stability to 22,000 longshore workers and 29 ports, ending 13 months of negotiations and weeks of disruption to supply chains caused by worker shortages. Although the specific details of the agreement have not been released, the breakthrough has important implications for resuming port operations, boosting economic growth, and safeguarding trade flows.

The tentative agreement was reached with the assistance of Acting U.S. Labor Secretary Julie Su. She used her experience and judgment to help both parties get back to the negotiating table and move toward a deal. This reaffirms the effectiveness of collective bargaining and brings important stability to workers, employers, and the supply chain as a whole.

U.S. West Coast ports have been facing worker shortages and disrupted operations for the past few months. This has created serious headaches for the supply chain, impacting the movement and delivery times of goods. However, the agreement this time offers new hope for resolving these issues. Once the agreement is approved by both parties, port operations will return to normal, and the movement and delivery of goods will be smoother.

The Ports of Los Angeles and Long Beach are among the busiest ports in the United States, handling about 40 percent of all U.S. imports. The smooth operation of ports is critical to the proper functioning of the U.S. economy. Before the agreement, the port was operating at 70% capacity, with throughput down about 20%. That puts a lot of pressure on all parties, especially with the holiday season approaching.

The agreement also provides greater stability for trans-Pacific trade. Earlier, Canada's International Terminals and Warehouses Union was also facing labor disputes and the possibility of a strike. This could disrupt operations at major ports such as Vancouver and the Port of Prince Rupert, further impacting international trade.

While this agreement is an important milestone, there are still some challenges ahead. Ports need to entice cargo owners and operators to reselect West Coast ports and recover lost cargo volumes. In addition, as the global economy continues to grow, ports also need to cope with increasing freight demand. This requires the port and workers to continue to work hard to ensure the port's operational efficiency and cargo safety.

The preliminary agreement is an important milestone for the logistics industry, providing stability for operations and trade at U.S. West Coast ports. However, in order to achieve long-term sustainable development, all parties need to continue to work hard to solve the challenges faced in operation. Through cooperation and dialogue, unions and employers can find balanced solutions that ensure fair and equitable labor conditions while protecting the operational efficiency of ports and the flow of trade. In addition, the participation and support of the White House in this process is also crucial to ensure the smooth operation of the entire supply chain.

To sum up, the conclusion of the tentative labor agreement at the ports on the west coast of the United States is an important milestone, injecting new stabilizing force into the supply chain. This breakthrough will help restore port operations, boost economic growth, and ensure the smooth flow of trade. However, concerted efforts are still required to ensure the operational efficiency and sustainable development of the port. Only through cooperation and consultation can a stable and efficient international logistics network be established to promote the prosperity and development of the global economy.

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