Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - October 3, 2002
Contact:  Roger Nyhus, Governor's Communications Office, 360-902-4136

Economic Impact of West Coast Port Closures is Potentially Great; Gov. Gary Locke Urges Swift Settlement

Gov. Gary Locke today said the economic impact of the West Coast port closures by shipping companies could be significant, and he strongly urged the shippers and longshoremen to come together and reach a quick settlement.

“Washington is the most trade-dependent state in the country, and this lockout could have a significant impact on our state’s economy,” Locke said. “In this recession, every day matters – we need to get our ports open as soon as possible. I strongly urge both sides to negotiate in good faith with the federal mediator to reach a swift agreement.”

According to a Salomon-Smith-Barney analysis of West Coast ports, most retailers have sufficient inventories to bridge the gap for the first week of the shippers’ lockout of longshore and warehouse workers. If the stoppage lasts two weeks, most retailers will begin to see bare shelves in late October or early November.

After three weeks, Thanksgiving merchandise will have arrived too late, and Christmas merchandise will be threatened. After four weeks, widespread order cancellations and poor fourth quarter retail sales will result, reducing total fourth quarter sales by nearly 7 percent.

A four-week work lockout would result in a projected reduction in Washington fourth quarter retail trade sales of $570 million, or about $37 million in state tax revenue.

In addition, if all 3,400 longshoremen and other workers in the marine cargo-handling sector were unemployed for one month, lost wages would total $20 million.

“This lockout is hurting the longshoremen, the ports, the shippers and farmers whose livelihoods depend on transporting goods and agricultural products to customers,” Locke said. “If not resolved soon, this lockout will affect the economic recovery in our state and erode the overseas market share that our business owners and farmers have worked so hard to cultivate. We can’t let that happen.”

In 2001, two-way trade, both imports and exports, in Washington totaled $101 billion. Total Washington exports were $35.1 billion. The percent of exports using marine carriers was 21 percent, or $7.4 billion – an average of about $600 million in exports per month dependent on marine carriers.

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