'The ILA has been weakened due to trade balances and the type of freight handled, particularly at Gulf ports,' the report said. 'The largest ports in the U.S. (Los Angeles and Long Beach) grew primarily as a result of increased trade volumes with Asia and the growth of West Coast markets. This naturally gave more power to the ILWU since all-water routes to the East Coast have additional time costs (especially with post-Panamax ships) and the strength of the ILWU makes it difficult for ocean shippers to make gains from diverting freight from one West Coast port to another.
'The shift of trade to West Coast ports left East Coast ports with excess capacity. In addition, the breakbulk segment of the market, largely served by Gulf ports, became more competitive with firms seeking to lower costs. This led to the entry of non-ILA stevedoring to Gulf ports, in turn leading to wage concessions by ILA workers in breakbulk and the emergence of 'ILA lite' operations,' the report said.
'The excess capacity on the East Coast and the ability of employers to pit labor at different ports against each other led to a bifurcation of the ILA wages and further segmentation of this labor market at a time when the ILWU was working to eliminate segmentation in their labor market. Given this confluence of events, it is unlikely that the ILA can recover its past power and bargain for wages that rival ILWU levels.'
The report, compiled by researchers at CSULB's Metrans Transportation Center, is available online at https://www.metrans.org/research/final/AR%2004-02_final_draft.pdf.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now