LOS ANGELES >> A tally of the billions of dollars lost during the recent labor dispute that paralyzed activity at West Coast ports is now in -- and the figure is less than analysts had predicted. Losses from dock lockout
less than predictedAssociated Press
Nationwide, the backlog of goods that were stranded on ships has cost businesses $6.28 billion, compared to a projected loss of $19 billion, according to a study released Monday by the Los Angeles County Economic Development Corp.
The losses resulted from lost sales of goods, lost taxes on those goods and wages.
"I am just glad they were able to settle this thing without another shutdown or before local business and consumers got washed out to sea," said Wally Baker, senior vice president for the private nonprofit group.
However, further losses may be in the works, said Jack Kyser, the agency's chief economist.
"You still have congestion on the docks and they are trying to get the (cargo) containers moving to where they are supposed to go," Kyser said. "If retailers get nervous about deliveries, they can reject shipments that come in after the contract due date."
The Pacific Maritime Association, which represents about 70 shipping companies, and the International Longshore and Warehouse Union ostensibly ended their dispute with a tentative six-year contract signed late Saturday.
Union leaders must still lobby some 10,500 dockworkers who must approve the pact to make it binding.
The deal followed a 10-day lockout that ended on Oct. 9 when a federal judge ordered ports reopened at the behest of President Bush. A subsequent 23-day backlog of work disrupted trade at 29 major Pacific ports.
Pacific Maritime Association
International Longshore and Warehouse Union
