Shippers' Concerns Rise Amid Strike Threat from U.S. East Coast Port Union

Port of New York  (Source: Port of New York & New Jersey)

The International Longshoremen's Association (ILA) contract covering 45,000 stevedores at 30 ports stretching from Maine to Texas will expire on September 30. At that time, if the parties cannot reach a new agreement, the union can call for a strike to occur during the peak commodity season, which is also the decisive period in which current President Joe Biden, a labor-friendly person who will strive to stay in the White House for another term.

On Monday earlier this week (June 10), the ILA canceled plans to begin negotiations this week with the U.S. Maritime Alliance, citing one member of that employer group's use of automation technology in violation of prior agreements.

ILA President Harold Daggett has previously warned that Association members will strike if the parties do not reach an agreement before the current contract expires. He warned local workers at important trade hubs such as New York/New Jersey and Houston to be ready to strike on October 1, union representatives said.

Although strikes by seaport workers are not common in the United States, the noise and concern in contract negotiations still makes the story tense. This is because any slowdown or shutdown would affect the flow of billions of dollars in goods ranging from food and medicine to furniture and factory equipment.

Meanwhile on the West Coast, Mr. Gene Seroka, CEO of the Port of Los Angeles, said on June 12 that ILA had no unusual moves this week. He commented: "During these negotiations, there are stops and starts."

East Coast and Gulf Coast ports had a slightly higher market share than West Coast ports in May. That's when Vincent Golebiowski, director of global supply chain at handbag brand Tapestry, told Reuters that he was focused on ensuring that the company's goods don't take longer to ship while shipping costs are limited. The shipment was not allowed to pass through the Suez Canal due to attacks by Houthi rebels in the Red Sea.

Strike warnings from the ILA this week will certainly make shippers like Mr. Golebiowski think more about other supply chain risks in the near future.

Source: Phaata.com (According to Reuters) 

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