business backgrounder | economy
“My first thought when it was over: How do we keep ourselves a multi-pronged initiative, built on stable labor relations, improved
from being right back here in five years?” Schinfeld said. To assure transportation networks, enhanced port productivity, and expanded
that the slowdown didn’t become just another nasty, nearly forgotten distribution and logistics centers to grow the cargo base.
disruption in a decade littered with them, he wanted “to capture The stakes are high. Jon DeVaney, president of the Washington
how painful it was.”
State Tree Fruit Association, talks about the impact on the state’s
He commissioned an analysis by Community Attributes Inc. (CAI) agricultural producers.
to document the effects on the state economy.
The apple, pear and cherry industries export about one-third of their
After crunching all of the numbers, CAI determined the slowdown crop, with apples and pears relying on waterborne transport, DeVaney
resulted in total near-term losses of $769.5 million to Washington said. During the slowdown, growers had to look for alternative, generally
businesses. The analysis breaks down the costs:
less lucrative markets or see perishable product expire.
• The largest share of the loss is attributed to $555.8 million in
There were few good choices. Products destined for Asian markets
exports not shipped by waterborne containers. About $152.6
may not be as desirable for the domestic markets. Distinctions,
million of goods were shipped by air so the net loss of goods
varieties, matter. There’s no “an apple is an apple is an apple.” A
not exported amounts to $403.2 million. CAI also points out
Gala is not a Jazz is not a Red Delicious.
that producers choosing other transport modes incurred costs
Asked about contingency plans, DeVaney says there aren’t a lot.
that were “upwards of 10 times waterborne shipping costs.”
“It’s the equivalent of the flotation device on your airplane, if you
• Trade goes two ways. The slowdown also reduced imports
could call that a contingency plan,” he said.
to the state. CAI estimates delayed and delinquent delivery
For some growers, contingency planning begins with the decision
of imported goods cost
of what product to plant: Do
Washington businesses
you manage risk by planting
$345.1 million. Retailers
for the domestic market?
didn’t get inventory and
That’s an extreme, worst
manufacturers didn’t get
case response. DeVaney said
parts and supplies.
that replanting an orchard
• Finally, there are the costs
is expensive, and beyond
of warehousing and storthe means of some small
ing product while waiting
orchardists.
for shipment. Add another
The best hope for Wash$7 million. Then tack on
ington businesses is to see
$14.2 million for truck
certainty restored to the
idling costs.
waterfront. Washington’s
Three-quarters of a billion
ports — the West Coast ports
in losses, however, is just the
— must again be seen as relibeginning.
able business partners.
“Future costs, such as dam Trade leaders
aged client relations resulting
were encouraged
in the loss of business or sole
by announcements
source contracts can have longi n Ap r i l t h a t t h e
lasting impacts on Washington
P M A a n d I LW U
— Eric Johnson, executive director, Washingt