A LABOR dispute at ports on the U.S. West Coast is disrupting supply chains across the Pacific, forcing some Asian suppliers to resort to costly air freight and pushing up shipping rates as more freighters are caught up in long queues to dock.
With ports near gridlock and cargo delays being felt throughout the U.S. economy, President Barack Obama on Saturday dispatched Labor Secretary Tom Perez to California to try to broker an agreement on a new contract between dockworkers and the group representing shippers and terminal operators.
Ports along the coast, which between them handle nearly half of all U.S. maritime trade and more than 70 percent of imports from Asia, have been experiencing severe delays since October, and the effects are rippling far beyond the United States.
Japan’s Honda Motor said late Sunday it would slow production for a week at plants in Ohio, Indiana and Ontario, Canada, as parts it ships from Asia have been held up by the dispute, affecting models including the Civic, CR-V and Accord.
“We do not have a sufficient supply of several critical parts to keep the production lines running smoothly and efficiently,” spokesman Mark Morrison said.
Honda and other carmakers have already started transporting some crucial parts from Asia to their U.S. factories by plane.
Fuji Heavy Industries, maker of Subaru cars, said it would continue flying parts to its U.S. factory beyond an initial arrangement through the end of February, which it previously said would cost an extra 7 billion yen (US$59 million) a month.
Toyota Motor, which built about 2 million vehicles in North America last year, said it has reduced overtime at some factories as a result, while Nissan Motor said it had been slightly affected.(SD-Agencies)
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