CALIFORNIA – Major retailers Costco and Walmart said they are prepared for potential shortages due to the International Longshoremen’s Association (ILA) strike that could impact food deliveries.
Almost 50,000 ILA members went on strike, October 1, demanding a $5 per hour increase in wages for each year of the six-year agreement.
They are also calling for no automation or semi-automation of cranes, gates and moving containers in the loading and unloading of freight.
At least 14 ports on the East and Gulf coasts faced significant disruptions, Tuesday, due to the strike.
Inland Empire may step in the fill the gap
California Retailers Association president Rachel Michelin said many of her member retailers have made contingency plans to reroute shipments to the West Coast.
“We’re going to see a backup here in California because we’re going to have to absorb more cargo,” said Michelin.
As a growing number of warehouses in the Inland Empire sit empty, space may be available to store the increased inventory.