Cargo Votes with its Rudder: The Geographic Mobility of Shipping and the Role of Labor

Abstract

The globalization of production and the geographic dispersion of economic activity have elevated the importance of the transportation and logistics sectors of the economy. One sector in particular that has experienced significant expansion is maritime transport and container shipping. As the cargo has become increasingly “discretionary” such that it can conceivably be transported through any port that allows intermodal access to the hinterland, the industry has become much more foot-loose vis-a-vis a particular port of entry. The enhanced mobility of the cargo results in more intense port competition. One particular place to observe and study this dynamic is in the port and terminal location decisions of shippers and shipping lines and the role of port authorities in attempting to attract these carriers to their facilities. In this paper the focus is on the role of labor, and labor relations, in such decisions. These issues will be studied in the context of the shift of container traffic from the West to the East coast of the United States and, as an illustrative case study, how these developments have played out for the East coast port of Jacksonville, Florida.