The Cost Of Not Doing Business - Global Trade Magazine
  February 20th, 2015 | Written by

The Cost Of Not Doing Business

U.S. EXPORTER SHARES HOW THE WEST COAST PORT SLOWDOWN HAS IMPACTED HIS BUSINESS

For Dominic Picarelli, president of Diamond-U Products, the current ongoing, seemingly never-ending, quickly approaching catastrophic slowdowns affecting West Coast ports have not only meant not being able to deliver products but also paying more not to do it.

“Extended warehouse fees and broker fees, handling charges are significantly higher because product is sitting for an extended period of time,” says Picarelli, whose company manufactures parts for the pneumatic and automotive industries. “Longer sit-times cause product to be moved more often, which results in high handling charges.” Diamond-U, a 92-year-old company that makes such things as tire and balloon inflators, radiator bibs and crimpers, does about 20 percent of its business through exporting—England and Mexico are its biggest customers. The company’s headquarters border the Port of Long Beach though that is of as little help, as was the warning from brokers about the approaching slowdown. “We alerted our customers around the world, but our sales response has obviously suffered,” Picarelli says. “If this continues our customers will be forced to look to China or Europe for alternative sources. Our economy just can’t afford an extended slowdown.”

“[Like] throwing gravel into the Grand Canyon.”

– B.J. Patterson, CEO, Pacific Mountain Logistics, speaking to Riverside Press-Enterprise on temporary measures such as temporary storage depots the Ports of Long Beach and Los Angeles have employed to alleviate pressure of slowdown.

 

SAY WHAT?

SOUNDING OFF ON the WEST COAST PORT LABOR DISPUTE

“It has come to my attention that [dockworkers] are not being given the opportunity to work on unloading these ships this Monday, [Jan. 19, 2015]. This move by PMA stands only to worsen the container backlog and hurt the small businesses across the country that depend on these imports.”  –Congresswoman Janice Hahn via Long Beach Press-Telegram

“The [Pacific Maritime Association] has a sense of urgency to resolve these contract talks and get our ports moving again. Unfortunately, it appears the union’s motivation is to continue slowdowns in an attempt to gain leverage in the bargaining. The ILWU slowdowns and the resulting operational environment are no longer sustainable.”  –PMA spokesman Steve Getzug via PMA press release

“The PMA’s action in further cutting night shifts at the ports of Los Angeles and Long Beach is another step closer to a lockout. … It will only serve to worsen the slowdown and congestion at the ports, disrupt the global supply chain, and result in irreparable damage to the reputation of our ports complex at a time when competition is peaking.” –Los Angeles City Councilman Joe Buscaino via Facebook

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