Bob Ferrari’s Post

“Tonight we are victorious, Champagne pouring over us All my friends were glorious, Tonight we are victorious” 1472 words 5 minute read - Let’s do this! As we have talked about for weeks, the International Longshoremen’s Association (ILA) at ports from Maine to Texas are set to walk off the job early October 1st, and it could become the most disruptive strike to the U.S. Ports in decades. Shippers that rely on East and Gulf Coast seaports have been importing early, shifting goods to the West Coast, and even putting cargo on pricey flights to hedge against the strike that could jam supply chains and reignite inflation 5 weeks ahead of the U.S Presidential Election. To stay informed of what is to come of all the disruption, subscribe to the Port X Logistics LLC LinkedIn page for up to date news and solutions for your supply chain, and to get on the list for this weekly Market Update Newsletter and future industry related news sent direct to your inbox email Marketing@portxlogistics.com As of Saturday, there were 42 container ships scheduled to arrive at the Port of New York and New Jersey, one of the biggest ports involved in the labor dispute, according to S&P Global's maritime tracking service Sea-web. Thirteen of the ships are scheduled to arrive after September 30th. As of today, the United States Maritime Alliance (USMX) has filed an unfair labor practice with the National Labor Relations Board requesting "immediate injunctive relief — requiring the union to resume bargaining — so we can negotiate a deal." Union workers at ports in the East Coast and Gulf Coast earn a base wage of $39 an hour after six years on the job. That is significantly less than their unionized West Coast peers, who make $54.85 an hour — a rate that will increase to $60.85 in 2027, excluding overtime and benefits. Assuming a 40-hour workweek, West Coast port workers are making more than $116,000 a year, versus $81,000 for their counterparts in the East. The ILA's initial demands included a 77% wage hike over six-year contract, with the labor group arguing that the increased pay would make up for the surge in U.S. inflation in recent years. The differences are not only over pay - to protect job security, the ILA is demanding a complete ban on the automation of cranes, gates and container movements used in the loading or unloading of cargo at the 36 ports. Import TEUs are down 3.53% from this week from last week – with the heaviest volume coming into Long Beach at 18.1%, Newark NJ 16.8% and Los Angeles at 16.5%. Import volumes through the Pacific Northwest has increased by double-digit percentages this summer due primarily to front-loading of shipments by retailers who sought to get ahead of the ILA strike on the East and Gulf coasts and the brief work stoppage by the Teamsters union against the Canadian National and CPKC railroads in August. Read more below. https://loom.ly/CNOtXYQ #LogisticsNews #SupplyChain #TruckingUpdates #Logistics #Strike

**Victory at the Docks: Historic Wage Deal for Port Workers** Following a three-day strike, 50,000 port workers have secured a groundbreaking wage agreement. This deal not only halts a potentially catastrophic economic crisis but sets a precedent for labor negotiations in the shipping industry. Key highlights of the agreement: - Immediate $4/hour wage increase, bringing hourly wages to $43 - An additional $4/hour raise annually for six years, resulting in a cumulative increase of 62% - Preserves jobs and promotes industry stability The swift resolution averts widespread disruptions to global container capacity and ensures the flow of goods resumes. While negotiations on other contract details continue, the wage agreement demonstrates the power of negotiation, public attention, and strategic alignment. #LaborRelations #EconomicStability #PortIndustry #WageNegotiations #MaritimeNews https://lnkd.in/dUSAXkCK

53 percent of railroad union workforce now covered under tentative or ratified labor agreements.  www.bnsf.com BNSF Railway announced it has reached a tentative, five-year collective bargaining agreement with The International Brotherhood of Electrical Workers (IBEW). Additionally, members of The National Conference of Firemen and Oilers (NCFO) have voted to ratify their collective bargaining agreement with the Class I railroad. The agreement with IBEW marks the ninth tentative agreement announced by BNSF in the last two months, ahead of the collective bargaining round, now representing more than 16,300 employees and 53 percent of BNSF’s union workforce. The agreements, all subject to ratification, provide a 3.5-percent average wage increase per year over the next five years. They also offer railroaders more vacation earlier in their career and meaningful enhancements to an already robust suite of health care benefits. BNSF has also reached ratified agreements with members o

Do you know how much dock workers at ports earn? You might be surprised! The reporting of more disruption at the Port of Montreal [sorry, friends in logistics and supply chain!] led me to wonder what the union strikes are all about. The latest 'final' deal [rejected by the union] would leave the average dock worker on $143,790. Out of curiosity, some research highlighted the huge variance in wages across locations in North America. It seems wages of ~$81,000 are typical for an experienced worker, AND additional benefits and overtime (and location) can make this considerably higher. How much higher? At high-cost locations, such as New York and New Jersey, dock workers can earn ~$350,000 a year. In lower-cost regions, average earnings are $170,000 - $200,000. No wonder the ports want to invest in more automation and streamlining! #logistics #supplychain #supplychainmanagement #shipping

The last longshore labor strike to hit the East Coast was in 1977, and in the 47 years since then many BCOs have come to trust the labor environment and on that basis built low-risk containerized supply chains routed through East and Gulf coast ports. In the process those ports built market share at the expense of the U.S. West Coast (see chart below from the JOC.com Gateway) which has experienced labor disruption, sometimes severe and lasting for months, during every contract negotiation going back to the 1990s (when I was West Coast Bureau Chief for the daily Journal of Commerce newspaper). Such is the magnitude of the market share loss that West Coast port employers, in response to the withholding of labor at Los Angeles-Long Beach at the tail end of negotiations with the International Longshore and Warehouse Union last year, said the disruptions “threaten to further accelerate the diversion of discretionary cargo to Atlantic and Gulf Coast ports." https://lnkd.in/grQrDX5Y Now that labor peace is under threat as part of the continuing fallout from Covid-19. Harold Daggett, president of the International Longshoremen's Association, last fall said the union will not work beyond the expiration of its current contract on Sept. 30. That has forced BCOs and their carriers and forwarders to make judgement calls on what will happen; if the view is that a work stoppage is a possibility, the next few months will be critical in getting prepared. As I write in this analysis (free to read), among insiders who we have spoke to there is a diversity of views. None believe there is no risk, given the ILA's view that it deserves a big pay increase and that the carriers are well-positioned to pay it following $400 billion in total container line industry profits earned from 2020-2023 as estimated by analyst John D. McCown. But that said opinions range from a view that both sides are motivated to get a deal done, to a wait-and-see attitude, to concerns that true danger of a work stoppage exists. https://lnkd.in/gGHRzukS

A recent port strike shut down thirty six East and Gulf Coast ports as 45,000 union workers walked off the job. The temporary contract extension only goes through until mid-January and if parties do not come to an agreement the strike could very well take place again. Negotiations around this deal are centered around wages, benefits, preventing outsourcing of some jobs to non-union workers, and strong protections against automations of port worker jobs.  The International Longshoremen’s Association (ILA) successfully negotiated and won from the United States Maritime Alliance a historic 61.5% wage increase spread over six years. With this in mind, the port workers resumed work. A strike resulting in a week or longer would have equated to shortages of products for the holiday selling period.  The ILA is hoping for protections in a future contract against the loss of port worker jobs to automation initiatives. The fight against automation is not just for job preservation but is also about ensuring that ILA members continue to play an essential role in port operations. By extending these negotiations they aim to establish stronger protections against the introduction of remote controlled fully automated machinery that threatens the jurisdiction of their workers. These protections are the hardest for the United States Maritime Alliance (USMX) to agree to since many other industries have turned to automation to increase productivity and streamline processes. Link to Article: https://lnkd.in/ehuRkZHF 

As the global supply chain continues to evolve post-pandemic, labor relations remain a critical factor in keeping goods moving. The latest developments with U.S. East Coast port unions underscore the delicate balance between wage demands and operational continuity. Learn more about the ongoing negotiations, the potential impact of a strike, and how this could affect businesses reliant on these vital trade routes.

The National Retail Federation (NRF) is expressing concern over a potential strike impacting US east coast terminals in October. NRF president and CEO Matthew Shay has urged both the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) to resume contract negotiations promptly. Discussions have been on hold for months, and there is growing talk of potential disruptions12. The current labor contract between USMX (representing employers at 36 ports on the east and Gulf coasts) and the union (representing approximately 70,000 dock workers) is set to expire on 30 September. However, negotiations, which began last February, have stalled due to significant differences regarding worker remuneration. Pay is one of the major hurdles in these negotiations1. The ILA is steadfast in its commitment to securing work for its members. A key point of contention is the legal dispute with the USMX over employment at the Leatherman container terminal in Charleston, where employers are advocating for a hybrid labor model. Additionally, work allocation issues related to handling offshore wind components and the battle over automation are other critical areas of disagreement1. In November, Mr. Daggett, the ILA president, emphasized the importance of addressing local issues early in negotiations to prevent delays. The west coast negotiations were prolonged due to unresolved local matters. Mr. Daggett has also warned that there will be no extension of the current agreement beyond 30 September1. While cargo owners may not be overly concerned at this moment, it’s essential to recognize the potential impact of a strike on supply chains. As the situation unfolds, stakeholders will need to closely monitor developments and prepare for any disruptions1. Learn more 1theloadstarcom2 cranewwcom3 blog.intekfreight-logisticscom https://lnkd.in/gWM66brJ

Canada’s major ports are experiencing significant disruptions due to concurrent labor disputes on both coasts. In British Columbia, a lockout initiated by the BC Maritime Employers Association (BCMEA) against over 700 foremen, represented by the International Longshore and Warehouse Union (ILWU) Local 514, has entered its second week. The lockout began after the union issued a 72-hour strike notice, planning limited job actions such as an overtime ban and refusal to implement certain technological changes. The BCMEA’s response was to lock out the workers, citing the need to “facilitate a safe and orderly wind-down of operations” amid escalating strike activities. Simultaneously, at the Port of Montreal, the Maritime Employers Association has locked out nearly 1,200 dockworkers following the union’s rejection of a “final” contract offer. The port authority has warned that a prolonged lockout could have “catastrophic” consequences for the Canadian economy, particularly affecting Quebec and Ontario. These labor disputes have raised concerns among business groups and government officials about potential disruptions to Canada’s supply chain and economic stability. The federal government has urged both parties to return to negotiations to reach amicable solutions and minimize the impact on trade and commerce.

BREAKING NEWS-- TRANSPORTATION LABOR STANDS WITH ILA PORT WORKERS IN CONTRACT NEGOTIATIONS FROM EAST TO GULF COAST WASHINGTON — Greg Regan and Shari Semelsberger, President and Secretary-Treasurer of the Transportation Trades Department (TTD) of the AFL-CIO, issued this statement of support for America’s largest port workers union, the International Longshoremen’s Association (ILA), which halted contract negotiations with port management this week: “From coast to coast, we stand strong with union port workers and the 85,000 ILA members who are fighting for a fair contract. For centuries, the longshore industry has provided a pathway to economic opportunity for people of color and other workers who have faced unjust barriers. Since the 19th century, port worker unions have fought to improve working conditions, secure regular employment, and increase wages for dockworkers, longshoremen, and other essential workers who support our domestic maritime industry. “In recent decades, foreign shipping conglomerates have raked in increasing profits off the backs of U.S. port workers who endure brutal and dangerous work conditions without seeing a fraction of those profits returned to them. The shipping companies who make up the U.S. Maritime Alliance (USMX) are bringing in billions in revenue and can afford to increase the wages of the employees who make those profits possible. “Corporate greed is on the rise but so is our solidarity as we reject the elimination of essential port jobs and the introduction of port automation technology to replace workers. We saw corporate greed in action during the 2022 national contract fight in the freight rail industry. We saw it last year when writers and actors went on strike in Hollywood, and again when unionized auto workers were forced to go on strike. In every industry across America, workers are rising up and demanding their fair share. Rest assured that longshore workers are doing the same and we will not rest until our brothers and sisters in the U.S. maritime industry receive what they are owed.” ### As America’s largest transportation labor federation, TTD represents 37 unions and millions of American workers in maritime, construction, aviation, rail, transit, manufacturing, and more. The ILA is one of the 37 proud unions affiliated with TTD. #UNION #ILA #maritimenews #businessnews