Several years ago, a contract dispute between West Coast dockworkers and shipping industry employers led to delays that resulted in cargo containers getting backlogged – a slowdown in delivery that impacted some promotional product suppliers whose sea-shipped products were prevented from arriving on time. Fortunately for the ad specialty industry, it appears that a logjam resulting from dockworker contract conflict will not be occurring again in the near future.

Earlier this month, the International Longshore and Warehouse Union, which represents dockworkers at 29 West Coast ports, announced its members voted in favor of extending their contract with the Pacific Maritime Association, which represents shipping employers. The new agreement expires July 1, 2022 – three years beyond the previous end-date. A news release stated that the contract increases wages and pensions while maintaining health benefits.

“This first-of-its-kind contract extension is great news for the maritime industry and the nation, setting the stage for reliable and productive cargo operations for years to come,” Pacific Maritime Association President James McKenna said.

Back in 2014, the dockworkers’ contract expired without a new contract being established. The union and owners contested new contract terms from May 2014 until an agreement was finally reached in February 2015. Industries like promotional products and retail felt the impact of the dispute, with the National Retail Federation saying the resulting shipping container backlogs posed a threat to retail supply chains.

“Nobody wants to see a repeat of the problems that were experienced in 2014-2015, and this remarkable sign of good faith on the part of both labor and management ensures that such a situation will be avoided,” Jonathan Gold, vice president for supply chain and customs policy at the National Retail Federation, said in a statement.