Hyundai-Kia Motors exports through NWSA gateway including Seattle Port
▲Cargo cranes and containers are seen in the Port of Seattle, USA. Seattle (USA)/AP News
As the Port of Seattle in the U.S., one of the largest ports in North America, was shut down due to conflicts with labor unions, exports to Korea were also put on emergency alert.
According to CNBC on the 10th (local time), the Pacific Shipowners Association (PMA) said it was closing the Port of Seattle after the International Port Warehouse Workers’ Union (ILWU) refused to send workers to the terminal.
The PMA and ILWU have been negotiating over wage increases since May last year. The union is demanding a significant wage increase in order to distribute the high profits that shipping companies and port terminals have earned during the novel coronavirus infection (Corona 19) pandemic (pandemic), but negotiations are running parallel as the PMA shows reluctance . The ILWU has 22,000 workers in 29 ports in the West Sea as members, and the PMA represents 70 companies, including terminal operators and shipping companies that use the terminals.
“The union is committed to contract negotiations that reflect the hard work and contributions of its members to the continued success of the multi-billion dollar shipping industry,” the ILWU said in a statement. “The PMA is using the media to influence this process. ” he criticized.
The Port of Seattle is a major export gateway for American agricultural products as well as refrigerated and frozen foods to Asia. Last year’s major trading partners were South Korea, China, Japan, Vietnam, Taiwan, Thailand, Indonesia and Malaysia. CNBC pointed out that “port closures could damage the United States‘ reputation as a trusted trading partner.”
There are also concerns that the exports of Korean companies such as Hyundai Motors and Kia will inevitably be disrupted. The Northwest Sailing Alliance (NWSA), which includes the Port of Seattle, has a ship terminal exclusively for automobiles, and Kia and Hyundai Motors are exporting automobiles using the gateway of the NWSA.
In addition to the port of Seattle, major western ports such as Los Angeles (LA), Long Beach, and Oakland have been disrupted due to labor-management conflicts over the past week, according to CNBC.