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Preparing for a Port Shutdown

LOS ANGELES—With the ports heading toward a shutdown after nine months of labor negotiations, we sat down with CBRE's Kurt Strasmann to talk about the potential effects a shutdown will have on the economic and industrial markets.

By Kelsi Maree Borland | Updated on February 12, 2015

LOS ANGELES—The West Coast ports could be approaching a labor strike. After nine months of labor negotiations, the Pacific Maritime Association and the International Longshore and Warehouse Union have been unable to reach an agreement, and it could mean the complete shutdown of the West Coast Ports, according to Kurt Strasmann, senior managing director of the port logistics group at CBRE.

“They are very close to the tipping point, and I think most people would agree that we are at the very end of the rope,” Strasmann tells GlobeSt.com. “Some people have come in to help mediate, but they could shut it down any day. This is a very important time right now.” A strike would mean the complete shutdown of the five West Coast ports: Los Angeles, Long Beach, Oakland, Seattle and Tacoma. The result would cost the national economy $2 billion per day, and have a significant impact on the Southern California economy—where the combination of the Los Angeles and Long Beach ports account for 35-40% of all goods coming in to the country. The West coast ports together account for 44% of the total goods coming into the country, which equates to 12.5% of US GDP.

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