Hopes for an imminent agreement on a new contract for US west coast dockworkers appear to have been dashed as employers have warned that the two sides remain far apart.

The Pacific Maritime Association, which represents terminal operators, shipping lines, and stevedores that employ longshore workers, issued a brief statement on Wednesday that dismissed speculation that a deal was close.

“Statements and rumors that our negotiations are ‘close’ to a final contract are not true,” the PMA stated. The PMA continued by adding, “Even after seven months of negotiations, we remain far apart on several issues, and the union slowdowns continue to disrupt the movement of cargo through the ports.  Business is being lost, and we are concerned that the damage is permanent and shippers will be fearful to put their trust in the west coast ports going forward.”

The International Longshore and Warehouse Union had been holding a caucus in San Francisco where there had been hopes that delegates would vote on a new contract. Instead, it ended on Tuesday without a resolution.

The ILWU did issue a statement soon after the PMA’s notice saying that there was nothing wrong with dispelling false rumors.

Both parties met on Thursday, “at which time the union looks forward to receiving the PMA’s response to the union’s latest proposals that were submitted this past Monday morning after meeting the previous weekend,” the ILWU said.

“Support from rank-and-file longshore workers remains strong and united.  More than 90 democratically-elected Longshore Caucus delegates who met in San Francisco on Dec 15-16 unanimously adopted a resolution affirming efforts by the ILWU Negotiating Committee to reach a fair agreement.”

The ILWU added that the cause of the port congestion crisis was due to “bad industry decisions that pre-date the slowdown allegations”. The ILWU included notes about how  the key drivers of congestion are industry-based changes in operations and business models, which include chassis outsourcing, and that has paralyzed ports and made the docks much more dangerous for those working there.

“Despite the longstanding port congestion problems, both sides remain committed to reaching a fair agreement as soon as possible,” the ILWU insisted.

Congestion at the largest complex in the U.S., the adjacent ports of Los Angeles and Long Beach, has become a a daily feature for the past few months, leaving ships to routinely anchor outside waiting for a berth. The delays partly reflect equipment shortages and the arrival of larger ships on the Pacific, however employers also blame industrial issues for hurting productivity.

As a result, shipping lines, shippers, and forwarders continue to feel the impact of the congestion.

This week Zim Line announced that calls to Tacoma would be dropped on the transpacific NP1 service and also calls at Seattle on its NP2 service would be cut for five weeks due to the congestion of those ports.

Hapag-Lloyd announced that the G6 Alliance would shift its PA1 service from Tacoma to Seattle for five weeks, also due to the congestion.

Logistics companies are feeling the impact of the congestion. Fedex executive vice president Michael Glenn said that Fedex was limiting customer volumes to mitigate the congestion.

“This issue has affected our operations as we have made adjustments to capacities on key markets to support our customers facing these ongoing port slowdowns,” Glenn said.

“In some situations the slowdowns have caused unexpected shifts in retail and e-tail customer needs in certain markets and we have put limits on customer volumes in order to ensure we meet our service commitments.”

Shippers continued to report issues related to the congestion at west coast US ports. The Agriculture Transportation Coalition said it was encouraged by proposals and the counter-proposals were being exchanged between the ILWU and PMA. However, the group did say that the congestion at the docks continued and they highlighted the plight of Christmas tree exporters whose stock arrived in Asia “brittle and dropping needles” because of the delays at US ports.

“They [the trees] could not be sold over there,” the AGTC said. “And so the customers are refusing to pay. It’s going to be a very sad Christmas for these Washington and Oregon tree growers.”

When the discussions between the PMA and ILWU opened in May, there were strong hopes that a new contract would be set by the end of July. By the end of August, only a tentative agreement on medical benefits had been achieved. Such a topic is usually the first item on the agenda, which can be taken as a sign that there is much more to still be considered.

The last agreement was a six year deal that expired on July 1. Groups of shippers have been urging President Obama to appoint a federal mediator as the talks have dragged on for months.

In 2002 employers locked out dockworkers when negotiations hand ground to a halt. The move forced President George W.  Bush to invoke the Taft-Harley Act and order ports to re-open.