Tuesday, March 12, 2002
Re: WEST COAST PORT STRIKE

Dear NASA Members,

We think it is important to advise everyone now that the labor situation at the West Coast ports, as it pertains to the contract renegotiations, has the potential to cause major disruptions this summer. The current three-year contract between the Pacific Maritime Association and the International Longshore and Warehouse Union (ILWU) expires July 1. For the first time in 30 years, shipping lines and terminal operators on the West Coast are openly talking about the possibility of a strike or lockout when this contract expires.

We are getting feedback from the major carriers of the likelihood of a slow shipping period from 7/1/2002 through 7/14/2002 if the parties cannot come to a conclusion prior to the contract expiration. It is also likely that if there is a 14-day shutdown of any kind, the President and/or the U.S. Government will impose a Taft-Hartley injunction, which will force the union workers back to work for a 90-day cooling off period for further negotiations. This would certainly not be an ideal situation, but would provide some type of temporary relief.

As of right now we do not know of any carriers that have come up with a contingency plan should a strike or work slow down take place. If the port disruptions were to happen they would occur shortly before the traditional transpacific peak season gets under way in the summer and would most likely have a lasting effect into the fall shipping season. We ask that you take this into consideration as you begin to plan your summer/early fall arrivals to the West Coast.

We will continue to closely monitor the situation and keep you apprised of any new developments. Thank you for your continued support of the North American Shippers Association.

Regards,
Judy Mannix
Administrator, North American Shippers Association, Inc.