FORT WORTH, Texas — Although the West Coast longshoremen’s lockout hasn’t yet been felt on store shelves by consumers, railroads, truckers and others in the transportation business are beginning to see its impact, the Fort Worth Star-Telegram reported.
Union Pacific Railroad, a major rail shipper from west coast ports that has a major classification yard in Fort Worth, has idled up to 60 of its normal run of 1,200 trains daily, UP spokesman John Bromley said.
Burlington Northern Santa Fe Corp., headquartered in Fort Worth, warned the investment community last week that reduced shipments from Southern California ports would cut its third-quarter earnings.
The railroad handles up to 7,000 40-foot containers per day from West Coast ports, BNSF spokesman Pat Hiatte said. To reduce congestion, the railroad has embargoed movement of containers west to the Pacific ports, Hiatte.
Hiatte and Bromley said their railroads haven’t reached the point at which they might have to lay off workers. The two carriers both employ more than 2,500 workers in Tarrant County.
The dispute between the dock workers and management continued Monday, with contract extension talks breaking down. President Bush moved toward intervention, establishing a board that will examine the effect of the dispute on the economy. The board of inquiry is required under federal law before Bush can order management to let the dock workers resume their jobs.
The Pacific Maritime Association, which represents shipping companies and terminal operators, has locked out 10,500 members of the longshoremen’s union without pay, saying that the dockworkers engaged in a slowdown late last month.
The number of cargo vessels stranded at West Coast docks or backing up at anchor points has risen to 200, according to The Associated Press. Dozens more were en route from Asia.
Another North Texas transportation company watching the longshoreman’s dispute with growing concern is Southwest Freight Distributors, which loads and unloads containers from rail cars at terminals and then trucks the freight to its final destination.
“About half of our business is international,” Vice President Michael Frame said. “We have 75 drivers, and we’re worried that we may get to the point where we might not have enough work for everybody.”
Container traffic from ports inland has become a major segment of long-haul rail transportation. Goods are placed in the 40-foot long containers, which resemble truck trailers. The containers can hold up to 43,000 pounds of freight. At ports, they are unloaded from ships directly onto rail flatcars. After their journey inland, they are unloaded again by companies such as Southwest Freight Distributors and trucked to their customers.
“This thing could have a devastating impact on people’s businesses,” Frame said. “I certainly hope that the federal government steps in.”
Fort Worth-based transportation consultant Richard Schiefelbein of Woodharbor Associates said the timing of the slowdown is crucial.
“A lot of businesses are shipping their Christmas inventories,” he said. “The container shipments have been the fastest-growing segments of railroad business in recent years. All kinds of goods are shipped by freight.”
The presence of the Port of Houston provides a safety valve for Texas shippers. Marvin Girouard, chairman and chief executive of Pier 1 Imports, said his company has rerouted some of its shipments from the Far East through Houston and East Coast ports.
“We’ve learned from past experience how to reduce the impact of the things,” Girouard said of the lockout. He added that Pier 1, the major Fort Worth home furnishings retailer, already has most of its Christmas inventory in warehouses.
“We order and ship most of our Christmas merchandise during the summer, so we’re set and ready,” he said. “There may be some stores with spot problems in the next few weeks, but we should be able to get through this in pretty good shape.”
Because of Japan’s major role in the automobile industry, the West Coast ports play a crucial role in movements of vehicles and parts into the United States.
Local dealers and repair shops report that, so far, no shortages of vehicles or parts have yet turned up. One major factor is the ability to ship through the Port of Houston.
“We get our cars from a supplier in Houston, and they have a good stream coming through,” said Brian Curtis, manager of Don Davis Toyota in Arlington. Curtis added that “we generally order two or three months in advance, so we haven’t felt any impact yet.”
Similarly Peter Akajuiba, director of operations for Exit 30 Imports in Fort Worth, said his repair and parts company hasn’t yet felt the impact of shortages.
“We buy most of our parts locally, but there still seems to be a good supply,” Akajuiba said.
Texas farmers should be spared the worst effects of the problems on the west coast. According to the railroads, most shipments of Texas farm produce go through Houston. The West Coast ports are more the gateway for midwestern farmers.