The Herald, Sharon, PA Published Saturday, October 5, 2002


Loomco International feeling effects of West Coast lockout

By Lisa Mehler
Herald Staff Writer

The president and chief executive officer of Loomco International LLC said the local company is in critical mode due to the lockout of unionized dockworkers on the West Coast.

"More than 90 percent of our business depends upon imported items," Rod Loomis said Friday. "Most of our goods are made in China, so the result of the strike is a direct impact on fourth-quarter business. Unfortunately, Christmas won't go on strike."

Loomco is a Reynolds Development-based importer of seasonal and general merchandise, including Christmas and Halloween decorations, home decor and lawn and garden items. "Normally, we run 5,000 (different) items per year," Loomis said Friday.

The Pacific Maritime Association, representing companies and terminal operators, have shut out about 10,500 members of the International Longshore and Warehouse Union since Sept. 27, stopping all commercial shipping at 29 ports in California, Oregon and Washington.

The major sticking point in the labor dispute is technology. The ILWU wants new jobs created by technology to be covered by a new contract.

Loomco depends upon international charter, freight forwarder agents and steamship lines to bring its merchandise into the United States.

"We are trying to direct freight to other locations, such as Vancouver (Canada)," said Loomis. "Their port is totally full and plugged right now."

The company also is trying to bring merchandise north through Panama to Baltimore or Philadelphia for shipment here, he said.

Loomco has more than 100 containers snared in the strike. "For a lot of these goods, the shipping date to customers is right now," said Loomis. "Department stores and a lot of retailers are in the same situation ... Companies cannot get their goods delivered to customers. Department stores are making the hard decision on making deliveries."

"Say a store in Hermitage has a distribution center in California. It takes three to four weeks to move the merchandise here. We're in that window right now," he said.

Loomis said the company's only option if a customer cancels an order is to bring the merchandise to its local warehouse to sell it. "We end up closing out or severely reducing price in order to move the goods," he said.

Once the impasse reaches a conclusion, logistics come into play. "If (the dispute) settles as we speak, there's only so many cranes to move merchandise," said Loomis. "I don't know exactly how long the delay is now, but it's just an overwhelming amount. Even if the cranes run 24-7, who knows when they will get to that last container. There's a possibility we could have Christmas items coming in January."

Loomis said he does not know how, or if, Loomco's containers will be prioritized for unloading once the lockout ends. "I assume it's going to be a first-come, first-served basis -- in line the way they are offshore right now," he said. "They could prioritize one shipping line over another, but I don't think that will happen."

The company is considering building a warehouse to store the unsold merchandise should customers cancel their orders.

One California-based customer is threatening to cancel now. "Every day is critical," said Loomis. "First thing in morning, I turn on CNN to see what is happening. Now we have an average 20 containers daily leaving China. We're making alternative shipping plans, going to a different port or different country, hauling in a different way."

You can e-mail Herald Staff Writer Lisa Mehler at lmehler@sharonherald.com



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