Port Slowdown Hinders Wine Industry

Mar 18, 2015

(Wines&Vines) - After working without a contract for seven months, dockworkers at 29 West Coast ports breathed a sigh of relief Feb. 20, when labor negotiators reached a tentative working agreement. But many suppliers serving the wine industry are still waiting for their shipments to be delivered, and laborers have yet to vote on the proposed contract, opening a window of possibility for further delays. 

Chris Kammer, CEO of San Mateo, Calif.-based Access Supply Chain/Access Wine Service, told Wines & Vines he began warning clients of a port slowdown at the Unified Wine & Grape Symposium held in January 2014.

“We knew back last spring there was going to be a disaster at these ports. I was telling clients, ‘Be prepared for a rough spring, and ship early,’” he said. “I felt like the guy walking around with a sign saying the world was coming to an end.” 

Payment without possession

Beyond the problem of delayed shipments, Kammer, who counts wineries and sellers of winery equipment among his clients, said port delays have complicated payment terms for many importers.

With a shipment currently more than two weeks late, Unionpack operations manager Tracy Totten agrees. “The suppliers want their money, yet we don’t have the product to send to customers,” said Totten, whose American Canyon, Calif.-based company provides screwcaps, capsules and sparkling wine hoods to North American wineries.

Totten was one of dozens of wine industry suppliers who responded to a survey Wines & Vines sent out to gauge the effects of the West Coast port slowdown. Of the survey respondents, more than 59% reported experiencing delays of four to eight weeks. A similar number said the slowdown had taken a financial toll on their business. 


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