I started this blog in November 2014 because I needed an outlet and a platform to explain to the general public the possibility of economic tragedy on the west coast if the status quo was allowed to continue. I’ll be extremely brief: the west coast port slowdown was the result of a failure to collectively bargain between the ILWU (International Longshore and Warehouse Union) and the PMA (Pacific Maritime Association). Collective bargaining absolutely and categorically FAILED the United States. It failed the import/export business on the west coast especially. It failed American agriculture that relies on an efficient transportation system to get its superior goods to market. And in essence it failed the American economy. It’s failure is my reality.
One of the main theme’s of my advocacy on this issue is this, and stated in this blog post:
Oregon’s Agriculture is NECESSARY for the continued strength of the state. But if we can’t get it to market, then what good is any of it?
I would suggest the same for American agriculture. According to a Joint Economic Committee of the United States Congress report:
“The agricultural sector makes an important contribution to the U.S. economy, from promoting food and energy security to supporting jobs in communities across the country. Exports are critical to the success of U.S. agriculture, and population and income growth in developing countries ensures that this will continue to be the case in the decades to come. U.S. agricultural exporters are well positioned to capture a significant share of the growing world market for agricultural products, but some challenges remain. Taking actions to facilitate exports would help to strengthen the agricultural sector and promote overall economic growth.”
The AgTC (Agriculture Transportation Coalition) has been stating this for years:
“There is nothing that we produce in this country in agriculture, that cannot be sourced somewhere else in the world. We can grow the best in the world, but if we can’t deliver affordably and dependably, the customer will go somewhere else… and may never come back”.
The theme here is obvious and overwhelmingly simple: for the sake of America’s economy, our ports need to work efficiently and productively.
And then this article drops today: Chinese Goods Bypass California.
Let me explain this in simple terms. Let’s say Fred Meyer’s is your favorite grocery store, but for some reason the traffic is horrible specifically in front of that store. One mile down the road, there is a Safeway with no traffic and has easy access. It’s a little harder to get there, but you start going to Safeway because it is efficient to do so. If Fred Meyer’s fixes the traffic problem, do you go back? Maybe. But also maybe do you stay with Safeway because you like the store and you’re now used to it? Possibly.
This is what the Wall Street Journal article speaks to. The west coast ports has a traffic problem. The east coast ports do not. China is choosing to spend a little more time and effort to ship into the east coast ports. And they might just find they are easier to work with. Will they make the move? Maybe. Will they ever come back? Maybe.
Anyone want to take this risk? I don’t. But it’s not up to me.
I’m going to be frank. The only person or entity that can take on the ILWU and the PMA is the President of the United States and the United States Government. I tend to be an optimist, but the fact that my hope is in the U.S. Government isn’t appealing and leaves me with a sense of hopelessness. I’m a believer in the Free Market. But, collective bargaining isn’t typically conducive to the free market. It’s ugly out there folks.
I could blather on for another couple hours about global trade routes and manufacturing in Asia moving east, ultimately making it easier to move product into the east coast ports of the U.S. Considering 2/3 of the population lives in the eastern U.S., this sounds like a good idea. What happens to our empty containers that we need to load for export on the west coast if all the containers are on the east coast? Even those not familiar with agriculture knows we can’t move our 250 different crops from Oregon to Kentucky. Also, I would suggest the southeastern states are more conducive to this little word: business. That is all for another discussion on another day.
My point: Let’s not give ship lines any more reason to bypass the west coast ports. I feel like I’ve said this too much lately, but: Wake Up America.
For more background information, visit my previous blogs on the West Coast Port Slowdown.