Labor dispute at the ports slowing Christmas deliveries


BLOOMBERG: FedEx said the labor negotiations are complicating its holiday-rush process.

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BLOOMBERG: FedEx said the labor negotiations are complicating its holiday-rush process.

Cargo congestion has been building for months as the pace of ship loading and unloading slows amid bargaining between the Pacific Maritime Association and 20,000 West Coast dockworkers. The National Retail Federation estimated a strike or lockout could cost the U.S. economy more than $2 billion a day. The dispute affects 29 ports, including Los Angeles and Long Beach in California.

“The slowdown in the West Coast ports has been a much bigger deal than people think, and a tremendous amount of inventory was simply not put through the ports in the timeframe that the retailers had expected,” FedEx Chief Executive Officer Fred Smith said on a conference call to discuss earnings.

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