East and Gulf Coast Ports Brace for Seemingly Imminent Strike
The collective bargaining agreement between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) expires in less than a week. The sticking points primarily involve increased wages and automation. No bargaining sessions are scheduled prior to the September 30 contract expiration, and the ILA is on record as stating it will not extend that deadline. A strike seems nearly unavoidable.
A strike would shut down the East coast and Gulf coast ports entirely. Those facilities include over half of the busiest ports in the country, with nearly 13 million containers passing through annually. What is more, the effects of a strike would mushroom well-beyond the actual strike, as shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight would be prevalent. Without question, even a reasonably short strike would devastate the container supply chain for months as the potential timing coincides with elevated holiday shipping demand. Several trade groups have therefore called on the White House to exert its Taft-Hartley Act power to force workers to remain on the job for an 80-day cooling off and negotiation period, but the White House has signaled it does not intend to do so.
Anticipating a strike, logistics providers should consider several mitigation measures. Preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including when necessary for urgent delivery, possibly air transport, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees could all be beneficial. Similarly, watching for increased port hours in the lead-up to September 30 may be helpful.
We will continue to monitor the interaction between the ILA and USMX. As deadlines loom, pressure to negotiate mounts. Although a strike seems unavoidable at present, increased pressure could conceivably lead to movement. For more information, feel free to contact Greg Feary, Jim Hanson, Jack Finklea, Don Vogel, Prasad Sharma, or Chris McNatt.
News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.
East and Gulf Coast Ports Brace for Seemingly Imminent Strike
The collective bargaining agreement between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) expires in less than a week. The sticking points primarily involve increased wages and automation. No bargaining sessions are scheduled prior to the September 30 contract expiration, and the ILA is on record as stating it will not extend that deadline. A strike seems nearly unavoidable.
A strike would shut down the East coast and Gulf coast ports entirely. Those facilities include over half of the busiest ports in the country, with nearly 13 million containers passing through annually. What is more, the effects of a strike would mushroom well-beyond the actual strike, as shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight would be prevalent. Without question, even a reasonably short strike would devastate the container supply chain for months as the potential timing coincides with elevated holiday shipping demand. Several trade groups have therefore called on the White House to exert its Taft-Hartley Act power to force workers to remain on the job for an 80-day cooling off and negotiation period, but the White House has signaled it does not intend to do so.
Anticipating a strike, logistics providers should consider several mitigation measures. Preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including when necessary for urgent delivery, possibly air transport, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees could all be beneficial. Similarly, watching for increased port hours in the lead-up to September 30 may be helpful.
We will continue to monitor the interaction between the ILA and USMX. As deadlines loom, pressure to negotiate mounts. Although a strike seems unavoidable at present, increased pressure could conceivably lead to movement. For more information, feel free to contact Greg Feary, Jim Hanson, Jack Finklea, Don Vogel, Prasad Sharma, or Chris McNatt.
News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.