Threat Of Strike At US East & Gulf Coast Ports

It is sometimes a difficult decision for us, whether to keep clients and partners advised of supply chain threats looming on the horizon, or whether to wait until nearer the time when the situation may be clearer.

Escalating labour disputes are one such example. Last month, we reported the potential for the national rail strike in Canada and the port strike in India, both of which would have led to major disruption in their respective regions. However, the Canadian strike was called to a halt within 24 hours and Indian port workers cancelled their strike at the eleventh hour.

While the threat of labour disputes could dissipate right up until day of the strike, we believe that it is better to communicate when these issues are building, as to be forewarned is to be forearmed.

Another such dispute is currently looming in the United States, which could lead to operations being impacted at 36 east and gulf coast ports from 1st October.

Talks regarding new contracts have broken down between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) and the current contracts expire on 30th September.

The two parties are currently nowhere near coming to an agreement over wage levels, bonuses, pensions and the introduction of automation. The ILA union have threatened a walkout on 1st October and have been very vocal in their criticism of the USMX, leading to a war of words.

As things stand, it looks likely that the ILA’s 85,000 workers are headed for a strike, but with three weeks to go that position could change. Of course, an agreement could still be reached beforehand, or there could even be government intervention like we have just witnessed in Canada.

It goes without saying that an ongoing strike of this magnitude would have a severe impact on ocean freight services in and out of the United States.

So, while your Westbound team are monitoring developments closely and will endeavour to keep you advised, we are always available should you wish to discuss the above in more detail.