Shutdown of US West Coast ports disrupts American economy

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The labour dispute that paralysed 29 US West Coast ports is sending immediate ripples through the US economy on Monday, idling trucks, stranding cargo and leaving some manufacturers to contemplate shutdowns within days.

Hundreds of millions of dollars' worth of goods were stranded at the docks and the lockout is estimated to be costing around a billion US dollars a day and jeopardising trade with Asia.

Scores of cargo-laden ships from San Diego, California, to Seattle, Washington, were locked out on Sunday when the Pacific Maritime Association, which represents shipping lines, locked out workers indefinitely.

"Our workers are locked out, ships and trucks are lining up outside ports up and down the coast with huge amounts of cargo accumulating," said Steve Stallone of the International Longshore and Warehouse Union.

"We are ready to go back to work as soon as the shippers allow us to. This is doing significant damage to the economy and the employers must take full and sole responsibility for it," he added.

The economic impact of the dispute is huge as the West Coast ports are the main points of entry to the country for trade from Asia, with about seven percent of the US gross domestic product passing through them.

The ports handle about half of the United States' ocean-going cargo, including vehicle, electronic, garment and sporting goods imports.

The autumn months are the busiest as US retailers stock up on imported goods for the key December shopping season which is crucial to US consumer figures.

The administration of President George W Bush said it was closely monitoring the dispute which it said could deal a severe blow to the economy.

-- Anonymous, October 01, 2002


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