West Coast Port Study and Highway Trust Fund Update


West Coast Ports

The NAM jointly released a study today with the National Retail Federation (NRF) that helps communicate the importance of keeping the West Coast ports open for business as the International Longshore and Warehouse Union (ILWU) and its employer group, the Pacific Maritime Association (PMA), negotiate a new labor contract. The current contract expires on Monday, June 30.

The NAM-NRF study models the potential impacts on U.S. employment, output and income if port operations were to cease for 5, 10 and 20 days at 30 West Coast ports along the continental United States. If such disruptions occur as a result of a protracted dispute between the negotiating parties, the economic consequences would be significant and widespread. The U.S. economy could lose as much as $2.5 billion per day if a prolonged, 20-day West Coast port shutdown occurs.

A news release can be found here: http://www.nam.org/Communications/Articles/2014/06/As-Negotiating-Deadline-Looms-for-West-Coast-Ports-Economic-Trouble-on-Horizon.aspx

Please keep in mind that work slowdowns at West Coast port facilities are anticipated next week due to the Fourth of July holiday and the ILWU's commemoration of its July 5, 1934 walk out, known as "Bloody Thursday." These slowdowns are not associated with the contract talks. The best outcome for manufacturers is a continuation of negotiations, without disruptions and a new labor agreement by the end of July. To keep policymakers informed of impacts to manufacturers, we are collecting non-attributable information about shipper uncertainty at West Coast ports, such as added costs associated with warehousing, forward shipping, new fees or surcharges and diverting cargoes. Please consider sharing any information that details impacts to your operations. This information is helpful to have on hand during Hill visits or meetings with the Administration and is kept anonymous, i.e., "One manufactures reports..."

Highway Trust Fund

Congress will soon break for its Fourth of July recess without reaching a bipartisan solution to keep the Highway Trust Fund (HTF) financially solvent before August when the HTF will no longer be able to meet its fiscal obligations to the states, jeopardizing work at 100,000 transportation construction sites and 700,000 jobs.

The Senate Finance Committee will resume consideration of a HTF short-term patch during the week of July 7, after postponing a mark-up of Chairman Ron Wyden's (D-OR) "Preserving America's Transit and Highways Act of 2014." An increase to the Heavy Vehicle Use Tax was among several offsets included in the proposal but was dropped at today's Finance Committee meeting. Chairman Wyden also announced today that he will work with House Ways and Means Chairman Dave Camp (R-MI) to identify offsets that have bipartisan acceptance.

NAM President and CEO Jay Timmons participated in a dialogue this week with the Senate Democratic Steering and Outreach Committee about the importance of rebuilding our nation's infrastructure.  NAM will continue to encourage Congress to seek bipartisan solutions that will improve the balance of the HTF as we seek a well-funded multiyear surface transportation authorization.  Last week, House Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA) helped kick-off a Shopfloor event on the Hill featuring NAM members who were on hand to help deliver the NAM infrastructure message to House staff.

Read about it here: http://www.shopfloor.org/2014/06/chairman-shuster-talks-transportation-at-nam-shopfloor-event/31535

Please let me know if you have questions.

Robyn M. Boerstling
Director, Transportation and Infrastructure Policy
Direct:   202-637-3178
Email:   rboerstling@nam.org