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Los Angeles, Long Beach Port Strike Holding Up Redbox Parts

4 Dec, 2012 By: Erik Gruenwedel, Chris Tribbey



 

An ongoing strike at the Port of Los Angeles — the nation’s busiest commercial harbor located in Long Beach, Calif. — could affect Redbox kiosks as it enters its second week.

The strike, which began Nov. 27 idling 10 of 14 terminals after 600 clerical workers walked off the job, has resulted in three-quarters of the cargo on ships not being processed. The port processes 40% of the nation’s imported cargo.

Among that cargo is a container of replacement parts for Redbox, which operates more than 40,000 disc rental kiosks nationwide, according to Port of Long Beach spokesperson Art Wong.

Wong said he got a call from female trucker who transports parts required in the service and maintenance of Redbox kiosks. The woman told Wong that her Redbox shipment had been sitting idle for a week.

“I’ve been getting calls from a lot of companies [regarding their shipments], and this one woman said that she handles cargo for Redbox and they have some parts that have been sitting out here. If they don’t get these parts there’s going to be kiosks they can’t fix,” Wong said the woman told him.

He said there are a number of containers with time-sensitive cargo sitting on ships on the water. Indeed, the National Retail Federation (NRF) has sent a message to President Barack Obama asking him to intervene in the labor dispute.

“The shutdown is already having a significant negative economic impact on retailers trying to bring in merchandise for their final push for holiday sales and will soon have an impact on consumers,” NRF CEO Matthew Shay said in a statement. “The work stoppage not only impacts retailers, but is also affecting their product vendors — many of which are small businesses — and other industries like manufacturers and agricultural exporters that rely on the ports.”

A Coinstar spokesperson said kiosk vendor is monitoring the situation and developing shipping alternatives if the strike continues. 

"However, to date there has not been a significant impact," said the spokesperson.


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