The threat of a strike at US East Coast and Gulf Coast ports seems to be intensifying as carriers announce emergency surcharges from October.
Talks regarding new contracts have not progressed between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX), with current contracts set to expire on September 30th.
This week, the Biden administration advised that it would not intervene, in response to a letter from 177 trade associations urging the US government to act.
Talks between the two parties have broken down over wage demands, bonuses, pensions and the introduction of automation. The ILA union’s threat of a walkout on October 1st across 36 ports is now fast approaching and as things stand looks set to go ahead.
The Port of New York/New Jersey confirmed yesterday that they have already started preparations for a complete work stoppage, and carriers have been busy confirming surcharges for ocean freight movements to and from North America from October.
The surcharge levels vary between carriers, but currently look set to be between $500-$1000 per TEU for US East and Gulf Coast ports, along with some ports in the Caribbean, Mexico and Canada.
The impact of the strike, should it proceed or continue for a significant period of time, could be devastating and the Westbound team are hopeful that an agreement can be reached in the next few days.
If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.
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