West Coast port worker contract talks that are pivotal to the supply chains of the promotional products market and other industries have reportedly hit an impasse.

Sources told The Wall Street Journal that the International Longshore & Warehouse Union (ILWU) will not move on to negotiating on major issues like wages until a dispute is settled over which union will be responsible for equipment maintenance at a terminal that handles cargo at the Port of Seattle.

ILWU, which represents about 22,000 dock workers at 29 ports up and down the West Coast, wants its members to handle the maintenance.

The Pacific Maritime Association (PMA) represents employers like terminal operators and shipping lines on the other side of the negotiating table. PMA has reportedly said that it can’t give the work to ILWU because the National Labor Relations Board ruled two years ago that another union, the International Association of Machinists and Aerospace Workers, must be awarded the maintenance duties.

ILWU and PMA haven’t commented on the alleged roadblock, saying only that negotiations are ongoing and that any reports on particulars are speculative and “second, third or fourth hand.” The sides have mutually agreed to refrain from discussing the talks in public.

Still, sources close to the negotiations asserted that ILWU will not discuss big-ticket topics like wages and potential additional automation at ports – which the union opposes – until the maintenance work situation for Seattle is cleared up.

The news comes about three-and-a-half months into the contract negotiations and nearly two months since the contract for unionized West Coast port workers expired on July 1.

Both sides have pledged to keep port operations moving, saying there’ll be no strike or lockout, but the ongoing lack of a contract and reports of stumbling blocks on the route to establishing one have made importers uneasy.

ILWU workers are vital to the operations of the sister ports of Los Angeles and Long Beach, through which about 40% of imported cargo containers flow into the United States. Other West Coast ports where ILWU members power operations are also essential to importers bringing in cargo from manufacturing centers in Asia, including China, where the majority of promo products sold in North America are made.

Stoppages or slowdowns at West Coast ports could cause cargo to back up there and ships to remain anchored out in the water, unable to deliver goods. Such consequences can inhibit the ability of importers, including those in promo, to restock inventory, leading to product shortages and stoking higher prices.

Fueled by concern over potential West Coast issues, some importers have redirected cargo to East Coast and Gulf Coast ports, though that’s led to congestion at some ports in those areas and is typically more expensive if bringing in product from Asia.

Some previous port worker contract negotiations were contentious. In 2002 and 2014, fallout from bitter talks led to shipping delays. President Joe Biden’s administration is not currently playing an active role in the 2022 talks, but has spoken with ILWU and PMA about the importance of keeping cargo moving.

All the news out of the negotiations hasn’t been negative. Progress was reported in late July when the sides announced they had reached a tentative agreement on health benefits, contingent on other issues in the negotiations. More details were not made public.