West Coast port slowdown continues
Asian suppliers are resorting to costly air freight, as a labor dispute at U.S. West Coast ports disrupts supply chains across the Pacific.
With ports near gridlock, President Obama dispatched Labor Secretary Tom Perez to California on Saturday to try to broker an agreement between dockworkers and the group representing shippers and terminal operators.
Many automakers have been hit hard in the U.S. as car parts have been held up by the dispute. Honda (NYSE:HMC) has declared that it would slow production at several U.S. plants, Subaru (OTCPK:FUJHY) said it would continue flying parts in to its U.S. facilities, while Toyota (NYSE:TM) announced that it had reduced overtime at some factories. Nissan (OTCPK:NSANY) also stated that it is being affected.
A Shanghai index for U.S. West Coast freight rates rose 23 points last week to 2,265 and brokers said quotes had risen a further five points today.
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