Issue 368, October 2, 2002 - 11:30 EDT
The labor dispute disrupting U.S. West Coast port activity continues, with the negotiations between the two sides still at an impasse as of this morning. A scheduled meeting today between the Pacific Maritime Association and the ILWU was cancelled this morning.

As of yesterday, President Bush was urging both sides to use mediation in an effort to reach a negotiated settlement. However, with the unwillingness of the two sides to meet today, major USA importers are now demanding President Bush to take immediate action. The Westcoast Waterfront Coalition, in a letter today, is imploring the President to "take whatever steps are necessary to re-open the nation's west coast ports".

In the meantime, our offices in Asia report increased demand for air freight to North America. All major airports are reporting high demand and tight capacity. If the current port shutdown continues, there is a very high potential for a spike in demand for air capacity, in any form, on very short notice. Based on the limited number of options available to shippers and importers, our Customers may wish to review their anticipated needs for inventory deemed as essential, and to secure adequate protective capacity while it is available.

We emphasize that this situation remains very fluid. However, even with any short-term resumption in services, the supply chain will take some time to return to normal levels, and our Customers should plan accordingly.

Our Danzas AEI Intercontinental Employees remain available to provide information on potential options for our Customers. We will also continue to update you on developments related to this work stoppage at our West Coast Ports.

Please note that due to the complex nature of the subject matter, DHL Danzas Air & Ocean cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with DHL Danzas Air & Ocean.