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Influences of West Coast Ports Stalemate

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Submitted By standbyme
Words 937
Pages 4
Can Xu
BUSML 3380
Thomas J. Goldsby
February 24, 2015
Influences of West Coast Ports Stalemate
Beginning in May 2014, dockworkers in west coast ports started slowing their work and therefore causing cargo delay significantly. As a main ports area of United States, it links Asia and West Coast, unloading thousands of tons of goods every day from fruits to manufacturing parts. A number of producers rely on west coast ports to supply their production. However, disruptions in 29 west coast ports have delayed productions and affected the U.S. economy. Finally, on February 20, the negotiations between west coast ports’ dockworkers and their employers were ended up with a tentative labor agreement, while the story doesn’t finish. This paper mainly focuses on impacts the conflict has on logistics as well as on related businesses.
On the one hand, the slowdown in west coast ports currently causes a longer lead time for both shippers and customers, forcing them to find alternative ways to handle the difficulty. Jackie Northam, a correspondent in National Public Radio reported that, because of the stalemate in west coast ports, some producers have diverted their imports to ports in west Canada and East Coast (2015). The fact is that, however, these ports don’t have the capability to transport and unload such a large volume of cargo as those in west coast ports. Therefore, people need more time to get their products even dockworkers at other ports work an excessive time. Moreover, people face even severer problems such as delayed production and lost customers. Every company will keep some inventories in hand to deal with unexpected issues. The most common two are increases in demand and lead time. As the lead time increases, producers and retailers begin to use their safety stocks to maintain sales. However, the amount of safety stocks is finite and people will get in

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