Port of Seattle Shutdown - A Closer Look at the Reasons Behind the 2023 Strike

The Pacific Maritime Association recently reported on coordinated and disruptive work actions at the Port of Seattle that have forced container operations to come to a halt, creating havoc across many businesses and organizations in its wake. This ripple effect can only be measured with great caution.

Lucky Louie Fish Shack employees in Sea-Tac have received rent deferrals in order to cover healthcare and pay other bills, yet this problem persists.

1. Union Strike

The Port of Seattle is one of America's key western ports and it has been closed due to a labor dispute for nearly two weeks now. According to Pacific Maritime Association (PMA), which represents terminal operators, International Longshore and Warehouse Union (ILWU) staged "coordinated and disruptive work actions" which shut down cargo operations and forced terminal operators out.

The PMA reports that longshoremen's actions have prevented cargo from moving at Los Angeles, Long Beach, Oakland and Seattle ports due to longshoremen's strikes. Port operations are crucial to America's economy because they handle billions of dollars worth of imports every year; as a result, this shutdown has garnered the concern of government officials concerned that it may disrupt national supply chains.

People reliant on the Port for their livelihood have also been affected. Nonunion longshore workers only receive a fraction of full-time pay and truck drivers transporting goods have additional insurance payments to consider.

According to a statement released by the ILWU, they are dissatisfied with the economic package offered from terminal employers during contract talks. They deny claims that they have shut down ports indefinitely by holding out until an acceptable settlement agreement has been made.

While port employees were protesting at dock gates, others joined them in rallies that resembled street fairs more than acts of resistance. Union members such as United Auto Workers and Service Employees International Union mingled with self-described socialists while listening to speeches and watching performances by local bands.

As the strike continued, truck drivers banded together and formed the Seattle Port Truckers Association - an influential body with real power over how cargo moved across the region. Drivers from large outfits like Seattle Freight Service Inc., Pacer Cartage, Western Ports Transportation and Elliott Bay Service Transfer decided not to work and joined with smaller firms who were outraged about high gas prices and medical care expenses as members of this union.

2. Unemployment

The shutdown continues to have devastating economic repercussions for Seattle-area residents. Sea-Tac serves as one of two large refrigerated container hubs - "reefers" - in which frozen foods such as French fries and milk, meat and apples are shipped via refrigerated containers called refeers. Cargo has stopped moving due to this shutdown, leaving hundreds of workers vulnerable and risking losing their jobs.

The Pacific Maritime Association reported on Saturday that coordinated and disruptive work actions by the International Longshore and Warehouse Union (ILWU) had shut down cargo operations at port container terminals, due to a shortage of dockworkers covering shifts. Meanwhile, the union accused port management of misreporting information that may sway public opinion, by misrepresenting one side or providing misleading or incomplete reports on matters in order to influence public sentiment.

KIRO 7 attempted to contact both PMA and ILWU officials for further comment, but none have responded. KIRO 7 also reached out for more information regarding this dispute from both parties but has received no reply yet.

Seattle area residents struggling with low wages have seen their groceries become scarcer as wages dwindle, prompting some residents to utilize food banks or apply for government benefits. A resource fair at Seattle International Airport on Friday hosted by Port provided short-term loans, bill payment assistance and other forms of aid; within Reach signed two people up for food stamps while United Way of King County informed workers of an upcoming eviction-prevention fair.

The Port is working with partners to help those impacted by the shutdown who have lost income as a result. A rent deferral program for airport dining and retail businesses that have laid off employees as a result of pandemic is currently in effect, and will be reviewed upon expiration of an eviction moratorium later this summer.

The Port is also working closely with Sen. Beth Doglio's legislation that would end the exemption of airport firefighting foams that contain PFAS until FAA approves effective, nontoxic alternatives; this bill has passed both Houses and awaits Governor Inslee's signature. Furthermore, we continue our partnership with Unite Here (national union representing some Sea-Tac food workers) on legislation giving airport operators authority to set labor standards for their staffs.

3. Decreased Business

Wartime years were kind to Seattle's Port of Seattle; peacetime has not been. While still handling considerable trade and commerce activity, its former dominance has yet to return.

Reason being: Fewer shipping containers are entering the region due to coronavirus infection and trade friction between China and the U.S. This combination has resulted in container volumes decreasing by 30% year-on-year according to terminal operator SSA Marine.

As a result, fewer ships are gathering along Puget Sound to unload cargo at the Port of Seattle and nearby ports like Long Beach and Los Angeles. Seattle expects this trend to continue; however, Terminal 5 recently started operations with one of the largest cranes on the West Coast.

But that won't solve everything; in the meantime, the Port has plenty of work to do. Terminal 5 only partially opened as of now; its completion could take another two years, leaving backlogs and delays at its core.

Additionally, the Port is suffering from truck backups caused by several factors - among them is an ongoing uncertainty over contract negotiations at West Coast ports; as a result of such concerns shippers are shifting volumes away from those ports toward Gulf and East Coasts ports.

SeaTac airport business has also been affected by this shutdown, with restaurants like Lucky Louie Fish Shack being forced to reduce hours and lay off employees in order to survive. But thanks to Port of Seattle rent deferrals and cost breaks for certain businesses at SeaTac Airport - such as Stratton-Clarke supplying food to passengers, flight attendants, pilots as well as providing health insurance and payroll - they may find relief from rent deferrals but only until further shutdown occurs.

4. Decreased Traffic

Rumors regarding the Port of Seattle closure have been swirling, so what are its realities? KCAW News reached out to Alaska Marine Lines and received an answer that left us impressed.

Reps from the company informed KCAW they're operating business as usual and don't anticipate any disruptions in service for Southeast Alaskans. In fact, they already anticipate an increased volume of cargo arriving by 2021 with over one million containers expected through.

Port officials have been stressing since Friday that operations at Seattle SeaTac Airport remain mostly operational with only occasional closures. However, according to terminal operator representatives in the Pacific Maritime Association's reports of coordinated union action by workers that caused ground operations at both terminals to stop operating over Monday and Tuesday due to "work slowdowns" organized by International Longshore and Warehouse Union; port sources report workers have been removed from shift assignments at Seattle terminal.

Due to a coronavirus outbreak and government shutdown that's left TSA employees without paychecks, airline passengers passing through Sea-Tac have dropped by two-thirds compared to last month, prompting other airports to reduce passenger traffic further and force airlines to cancel flights or make other adjustments as a result.

The port has not completely closed down, but operations at local terminals have slowed to 50% capacity due to a dramatic drop in cargo volume. According to Northwest Seaport Alliance that oversees Seattle and Tacoma dockside operations, trucks will be allowed back at Terminals 30 and 18 at 3:30 PM on Wednesday; thereafter they will return every Friday afternoon through at least June.

Port officials are taking every measure possible to minimize impact on shippers and the communities reliant on the ports for their livelihoods. They're encouraging shippers to plan ahead and work closely with freight brokers so that all shipments arrive on schedule; while also pushing federal administration officials to reopen all ports immediately.