Andrew Fox on LinkedIn: Dockworkers, Ports in a Standoff as Strike Threats Grow Louder (2024)

The ongoing tension between dockworkers and port authorities has escalated, with strike threats becoming more pronounced. Key issues include wage disputes and automation concerns. A potential strike could disrupt supply chains and significantly impact global trade. Resolving these conflicts is crucial for maintaining the efficiency and reliability of port operations.https://lnkd.in/gP3r68rZ#SupplyChain #Logistics #GlobalTrade #PortOperations #Dockworkers #StrikeThreats #Automation #WageDisputes

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Withno negotiations on the calendar, demands for a wage increase higher than the 32% won by West Coast dockworkers and significant concerns over automation, the risk of a strike at East Coast and Gulf Coast seaports at the end of September is a real one; but even the threat of a strike will have impacts long before the 30 September deadline arrives. Not only will importers and exporters need to put contingency plans into place but many will start pulling forward and shifting the routing of orders and this will be on top of accelerated orders that are seeking to get ahead of impending tariffs (whether actual or imagined) for certain products. This is also in addition to capacity challenges caused by the ongoing security threat in the Red Sea as Maersk's CEO recently updated the industry on here: https://lnkd.in/eGC__uaF.It's also worth keeping an eye on short term impacts on warehouse space demand (in certain regions) which, although recently falling off, is still tight by historical standards (more on this from Prologis is here: https://lnkd.in/e4czZ8jC).As ever, scenario planning and contingency plans are the watchwords.More of my thoughts on the impact of strikes is here: https://lnkd.in/ere8SD_X#supplychain #supplychainmanagement #supplychainrisk #supplychainriskmanagment Adebayo Adeleke Alan Amling Benjamin Gordon Daniel Stanton Gary S. Lynch Jason Miller Joe Carson Sunita Suryanarayan Jon W. Hansen Knut Alicke Marc Dragon Radu Palamariu Rob Handfield Sheri R. Hinish Stan Aronow Tom Raftery Wolfgang Lehmacher Margi Van Gogh Ted Stank Kathy Fulton Niall Murphy Rush*t Shah Ryan Elliott William O'Donnell Eric Topp John McFall BSc MBA FCMI Ross Valentine

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Threat of strike looms large over East, Gulf Coast ports.Labor contract expires at height of 2024’s peak season.The labor contract between the International Longshoremen’s Association and the United States Maritime Alliance (USMX) is set to expire at the end of September. The ILA represents some 70,000 dockworkers, while the USMX represents employers at 36 coastal ports — including three of the U.S.’s five busiest ports: the Port of New York and New Jersey, the Port of Savannah, Georgia, and the Port of Houston.‘Talk of potential disruptions has increased’In November, ILA leadership warned roughly 45,000 of its members to “prepare for the possibility of a coastwide strike in October 2024,” after the current master contract expires. ILA President Harold Daggett also cautioned that there is no chance of extending the current contract past the expiration date. Unsurprisingly, these threats unnerved trade associations like the National Retail Federation, which have actively voiced their desire to facilitate negotiations between the two parties. NRF President and CEO Matthew Shay, in a January letter, expressed concern “that the discussions have been on hold for months and talk of potential disruptions has increased.#globaltrade #GulfCoast #longshoremenstrike #NY #containerports https://lnkd.in/g7jm_M5g

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As news of a potential ILA strike looms for the Atlantic and Gulf Coast Ports, it’s important for shippers to start considering additional alternatives again. 𝗪𝗵𝗮𝘁’𝘀 𝗴𝗼𝗶𝗻𝗴 𝗼𝗻 𝗵𝗲𝗿𝗲?The International Longshoremen’s Association (ILA) is threatening a coastwide strike if their contract demands are not met by October 1.The ILA halted contract talks with the UNITED STATES MARITIME ALLIANCE LIMITED (USMX) over concerns that Maersk Line and APM Terminals are employing an Auto Gate system, which processes trucks autonomously without ILA labor. Additionally, the increasing presence of IT personnel on marine terminals is seen by the ILA as encroaching on their jurisdiction.ILA members are fully supportive of the union’s stance and are prepared to strike, emphasizing the crucial role longshore workers played during the pandemic.📌 𝗝𝗕𝗙 𝗣𝗘𝗥𝗦𝗣𝗘𝗖𝗧𝗜𝗩𝗘 - Insights from Adam Gray With the Port of Baltimore accident earlier this year, US Import/Export volumes have already experienced significant disruption. The sentiments expressed by Harold Daggett, President of the International Longshoremen’s Association (ILA), which represents over 70,000 dockworkers, seem to indicate very little flexibility in resolving the existing violations and terms of their next contract.In addition to the Auto Gate system replacing Longshoreman jobs, the additional concerns expressed about the increasing IT presence of shippers in ports is also a concern.Given the increasing demand to visibility and tracking of all goods being shipped, it will be interesting to see how Shippers reconcile the need for additional tech, and the ILA’s desire to use their own resources. As AI looms on the horizon of businesses of every kind, it will be interesting to see how this same scenario plays out across other unionized working environments as technology continues to evolve.Stay tuned!Follow 🔔#jbfreporterfor industry news updatesArticle source: https://lnkd.in/e_6yVf2bImage source: https://lnkd.in/efFZ7pEd

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Threat of Strike Looms Large Over East, Gulf Coast Ports The labor contract between the International Longshoremen’s Association and the United States Maritime Alliance (USMX) is set to expire at the end of September. The ILA represents some 70,000 dockworkers, while the USMX represents employers at 36 coastal ports — including three of the U.S.’s five busiest ports: the Port of New York and New Jersey, the Port of Savannah, Georgia, and the Port of Houston. Contract negotiations between the ILA and the USMX began in February 2023 but quickly foundered on the issue of wage increases. Developments since then have not been promising. https://lnkd.in/eUC5axiK #freight #coastal #shipping #shippingindustry #strike

It's been a couple weeks since the subject was last mentioned and the 800# gorilla in the room has gained some weight! This could put everyone's plans in the circular file. East Coast & Gulf Coast cannot afford a strike. I don't think the supply chain can afford a strike. The carriers don't want a strike! Of course, the ILA is looking for a similar deal that the west coast received, give it to them. You are not going to get away with a cheaper deal, that's a FACT. Just won't happen. So keep an eye on this situation as we may see some additional saber rattling and a slow down. Let's keep business rolling and keep working to a mutual beneficial conclusion. #supplychain #portstrike #imports #ILA #givememine #contracttalks

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With peak season right around the corner, the prospect of avoiding an ILA strike that could affect ports from Main to Texas is becoming gloomier.There are currently no negotiations on the calendar between now and when the contract expires on September 30th.The ILA has stated they do not want anyone, including the White House, “to interfere in our negotiations.”The ILA is looking for a higher pay increase than the 32% over six years that the West Coast secured for their workers and they are very far apart on Automation.This information should be considered heavily in your purchasing decisions for any material that will be arriving stateside after September 30.Should a strike happen, ships will be redirected to an open port, likely LB/LA.If these things happen, the backlog witnessed during COVID has a real possibility of returning and “supply chain issues” will once again be the buzzwords of the day.#PeopleDriveLogsitics #International #Shipping #Strike #Ports #ILA

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Threat of strike looms large over East, Gulf Coast portsThe labor contract between the International Longshoremen’s Association and the United States Maritime Alliance (USMX) is set to expire at the end of September. The ILA represents some 70,000 dockworkers, while the USMX represents employers at 36 coastal ports - including three of the U.S.’s five busiest ports: the Port of New York and New Jersey, the Port of Savannah, Georgia, and the Port of Houston.Contract negotiations between the ILA and the USMX began in February 2023 but quickly foundered on the issue of wage increases. Developments since then have not been promising.Retailers are broadly expected to pull forward their peak season freight so as to avoid potential issues come October. But if negotiations between the ILA and USMX deteriorate further — and especially if the ILA follows through with its first coastwide strike since 1977 — the pendulum is likely to swing back in favor of the West Coast.Source: Freightwaves

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In 2024, shippers relying on US East Coast & Gulf Coast ports will be living with the same labor uncertainty that loomed large at West Coast ports last year. Labor contracts expire at the height of peak season in October. A port terminal strike at that time would create severe supply chain disruptions. https://lnkd.in/eUC5axiK#shipping #ports #freight #cargo #labor #shippers #supplychain

** US East-Coast & Gulf Sea Ports **There is a potential US port strike on the East and Gulf coasts if a new agreement is not reached by September 30 , 2024.The International Longshoremen Association (ILA) are seeking higher wages for their approximately 45,000 dockworkers, prohibitions against terminal automation and want all new terminals to go to ILA members.Last June, the International Longshore and Warehouse Union (ILWU) secured a new contract for their 40,000 west coast dockworkers that included a 32% pay raise over six years and a bonus for working during the pandemic.Timing of the potential strike is not lost with the upcoming US election on November 5, 2024. Port disruptions would overlap with the final month of President Biden’s reelection bid.This potential strike could mean supply chain disruptions amongst workers at multiple ports including New York/New Jersey, Miami, Houston and Baltimore. The industries affected include automotive parts, pharmaceuticals, apparel, computers, industrial supplies amongst others.We will continue to keep you updated.For Rates: Please emailrates@cornerstonelogistics.comWe're Here To Get It There With Care !#freight#logistics#transportation#team#drayage#transload#port2door#projectcargo#imports#exports#crossborder#ftl#ltl#intermodel#tfiint#cornerstonelogistics#warehousingsolutions

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