Matthew Stone’s Post

The looming strike at the Port of Baltimore and other major East and Gulf Coast ports is raising significant concerns about supply chain disruptions and increased freight costs. If the strike proceeds, it could halt operations at key ports from Maine to Texas, including major hubs such as New York/New Jersey, Charleston, Savannah, and Houston. These ports handle a large portion of U.S. containerized imports—up to 68%—and any work stoppage would significantly delay the movement of goods. Freight costs have already been under pressure due to increased demand for port capacity, and this strike could exacerbate the issue. Even a short strike could lead to weeks of backlog at warehouses and distribution hubs, driving up transportation costs. A longer strike would likely result in global freight rate increases, which have been stagnant in recent months but are expected to rise sharply with any prolonged disruption. Alternative routes, such as Canadian and West Coast ports, are being considered, but they may not fully mitigate the impact.

The ILA strike is over. What should shippers prioritize now? Supply Chain Dive While the strike was short-lived, it could take weeks to clear cargo backlogs and bring ports back to normal operations. Shippers are still facing cargo backlogs and freight constraints. If you need help with a workaround, you can reach us at logsitics@willsonintl.com or 1 866 945 5378 After a three-day strike disrupted East and Gulf Coast port operations last week, the ILA and United States Maritime Alliance reached a tentative wage deal and agreed to extend their master contract until Jan. 15, 2025. The extension gives both parties some time to negotiate pending issues but if a master contract is not renewed by then, the union could go on strike again. Shippers, however, are still dealing with lingering impacts from some of the terminal closures that took place during the work stoppage. It will likely take most of October to get port operations back to normal due to the backlog of cargo and vessels caused by the strike, Vespucci Maritime Partner and CEO Lars Jensen wrote in an Oct. 7 LinkedIn post. “This will also create some ripples whereby we will see a temporary decline in capacity offered from Europe to North America,” Jensen wrote. Before the union went on strike, some shippers diverted cargo to the West Coast and frontloaded goods to mitigate any potential impact to their supply chain operations. At the start of the strike, West Coast rail operations were strained due to high inland point intermodal volumes, according to ITS Logistics. We asked six experts what impacts shippers are facing and what they need to focus on to better manage their freight and supply chains.  Click on the link to read what the six experts said. https://lnkd.in/gEJfZywg #Portstrike #workarounds #cargobacklogs #logisticssolutions Faiz Siddiqi Claudia Ribeiro, MBA, CIFFA

If your supply chain requires shipping anything through the East Coast or Gulf Coast, you must pay close attention to this strike. The two sides have not held an official negotiation since June. Sec. of Transportation Buttigieg and Labor Sec. Su met with the terminal operators on Friday to try and restart talks with no movement. The longest ILA strike was 44 days, this one could go longer. With that in mind, the next options to ship into the United States are Montreal (on strike until Thursday) or Halifax and move over the border via rail or truck. With either option, the cost and schedule impacts are going to be significant. Freight routes were already strained with few empty containers, and were booking four weeks in advance. The lead time is already increasing, especially through the Canadian ports. To mitigate these challenges, it’s crucial to proactively manage your supply chain and plan equipment shipments well in advance. Identifying alternative routes, adjusting schedules, and coordinating closely with logistics partners can help reduce the risk of delays and unmitigated cost increases. By taking a hands-on approach, businesses can stay ahead of potential bottlenecks and maintain project timelines as efficiently as possible despite the current uncertainties in the supply chain landscape. https://lnkd.in/g3veemSz

East Coast Port Strikes • The port strike, involves dockworkers from the International Longshoremen's Association (ILA), is set to commence at midnight TONIGHT, affecting ports across the East and Gulf coasts of the United States. • Scale and Impact: Approximately 45,000 dockworkers are expected to go on strike. This could potentially shut down 36 ports which handle roughly half of the goods shipped into and out of the U.S. • This strike could lead to significant disruptions in the supply chain, potentially causing delays and price increases for a wide range of goods from automotive parts, electronics, to food items like fruits, coffee, and even holiday goods. • Economic Impact: Some sources suggest losses could reach up to $4.5 billion daily if the strike continues. - Why are they Striking?: The ILA is demanding a substantial wage increase, reported to be around 77% over six years, and stricter controls or bans on automation in port operations. This automation, which includes cranes and container-moving technologies, is at the heart of the dispute, with workers fearing job losses. • Preparation: Many businesses have shifting shipments to West Coast ports or preparing for extended supply chain disruptions.

On October 1, 2024, at 12:01 a.m. ET, dockworkers across the East Coast and Gulf Coast of the U.S. initiated a strike. This action, led by the International Longshoremen's Association (ILA), which represents 45,000 port employees, followed the collapse of negotiations with the United States Maritime Alliance (USMX) over disputes concerning wages and automation projects at the terminals. The strike has effectively halted shipments of goods such as food, cars, and other cargo, severely disrupting supply chains nationwide. Economic losses from the strike are projected to reach $5 billion daily. The ILA turned down USMX’s final offer, criticizing it as inadequate to meet the needs of union members in securing a new contract. The length of the strike remains uncertain, though White House officials are aiming for a swift resolution. In response, retailers have been speeding up holiday shipments and diverting cargo to the West Coast where possible. The strike is creating concerns for companies dependent on ocean freight for both importing and exporting. Despite the situation, the U.S. Department of Agriculture has stated that food prices and availability are unlikely to see significant changes in the short term. Analysts at Capital Economics noted that while the strike is not expected to cause major economic disruption, a prolonged impasse could prompt President Biden to intervene if the two sides fail to reach an agreement. Get ready for a HUGE uptick on the West Coast ports…

As the strike by the International Longshoreman’s Association – the largest dockworkers in the country – reaches its second day, the impact of having approximately 50,000 of its 85,000 members walk off the job is a cause of much concern and discussion. The stoppage brings imports and exports into the country – from Maine to Texas – to a halt. Fourteen ports are most immediately impacted including New York/New Jersey as well as Philadelphia. In addition to a wage increase of 77% over six years, the Longshoremen’s Union has said it wants a ban on the automation of cranes, gates and container movements that unload and load the freight ships in 36 different ports. How will this impact the country short-term and long-term? And should the federal government step in? A number of business and academic leaders weighed in:

**US PORTS STRIKE UPDATE** Thousands of dockworkers at major East and Gulf Coast ports are preparing to strike, which could disrupt the flow of about half of all goods shipped in and out of the U.S. The strike, set to start after September 30, stems from a breakdown in negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX), which represents terminal operators and ocean carriers. The union is demanding higher wages and a ban on port automation to protect jobs. East Coast dockworkers earn significantly less than their West Coast counterparts, who recently secured a pay raise. The ILA wants a 77% wage hike to counter inflation, but USMX has offered a lesser increase. A strike would affect 14 key ports, including New York, Baltimore, Savannah, and Houston. Experts warn that a shutdown could significantly impact supply chains, causing delays, increasing shipping costs, and leading to shortages in industries like automotive and pharmaceuticals. Even a brief strike could take days or weeks to recover from, and the U.S. economy could lose up to $5 billion a day. Some companies have already stockpiled goods, but if the strike persists, federal intervention may be considered under the Taft-Hartley Act. This would mark the first mass work stoppage at these ports since 1977. The Biden administration is monitoring the situation but has not yet taken any steps to intervene. STAY TUNED! 🥴

Approximately 50,000 longshoremen from the International Longshoremen’s Association (ILA) initiated a strike at East Coast and Gulf Coast ports on October 1, marking the first strike since 1977. The strike affects 14 major ports, including New York/New Jersey, Charleston, and Miami, which handle 43%-49% of all U.S. imports and billions in trade monthly. The ILA rejected a nearly 50% wage increase offer over six years from the United States Maritime Alliance (USMX), leading to the work stoppage. The strike is expected to significantly impact the U.S. economy, with potential costs of $3.78 billion for a one-week strike and supply chain slowdowns extending into mid-November. Key industries, particularly food, pharmaceuticals, and automotive, are at risk due to their reliance on the affected ports for imports and raw materials. The Biden administration is involved in efforts to mediate negotiations, emphasizing a non-interventionist approach regarding labor disputes. The strike has garnered support from other unions, including the Teamsters, indicating a unified labor front against the port management. Historical context is provided by the ILA's previous strike in 1977, which saw solidarity from the ILWU at West Coast ports. The ongoing strike could exacerbate existing supply chain issues, particularly following disruptions caused by Hurricane Helene. #usportstrike #supplydisruption

The recent International Longshoremen’s Association strike may have ended, but shippers are still grappling with cargo backlogs and freight constraints. After a disruptive three-day strike, the ILA and United States Maritime Alliance have reached a tentative wage deal, extending their master contract until Jan. 15, 2025, allowing time to negotiate pending issues. However, if a new contract isn't agreed upon by then, the union could strike again, posing further challenges for shippers due to lingering impacts from terminal closures during the work stoppage. As we approach 2025, it's crucial for shippers to prioritize diversity within their supply chain to effectively manage disruptions. Reach out to Transportation Insight to develop a resilient supply chain capable of navigating uncertainties. #TransportationInsight Read more about the implications of the ILA strike resolution on shippers: [Link to article]

Strike threats at the horizon..... Given the enormous potential impact of the US dockworker strike on all shipping, the focus of this week’s report is on what the collateral effects of a strike might be on reefer. Unless the International Longshoremen’s Alliance (ILA) and the United States Maritime Alliance (USMX) reach a settlement in the next few days, the container ports on the US eastern seaboard and Gulf Coast will come to a standstill. The portents are not good: the ILA, noting the windfalls earned by the carriers during aftermath of the Covid supply chain disruptions, is holding out for wage increases that would amount to 80% over the 6-year timeframe of the master contract. In contrast, the USMX continues to point to the 32% agreed by longshoremen on the US West Coast during summer, 2023. If a contract is not agreed by this Sunday, the ILA will be positioned to strike on Monday. If it goes ahead, the strike will paralyse container ports and compromise the movement of containers. There will be chaos. Both ports and carriers have taken steps to mitigate the impact. Ports have been encouraging importers to collect their cargo, with the Port of New York and New Jersey warning that in the event of a strike, there will be no staff to monitor or adjust refrigerated containers left on terminal after Monday. On Monday this week, Maersk said that due to potential labour disruptions, it is to impose a local Port Disruption Surcharge for all cargo moving to and from U.S. East Coast and Gulf Coast terminals, effective October 21, 2024. The charge amount per equipment size is US$1,500 per TEU and US$3,000 for FFE. While they won’t say so publicly, the carriers are not unhappy about the potential disruption. Stock markets support this view - earlier this week, AP Moller-Maersk shares jumped as much as 4.9%, extending recent gains on expectations that labour talks with US port workers will fail, thereby sparking a new round of supply-line disruptions that would boost freight rates. For Maersk and other container lines, a strike would add to a string of global trade disruptions in recent years, including the Covid-19 pandemic and attacks on ships in the Red Sea, which have boosted the freight rates they can charge their customers. Maersk has said that even a one-week US strike could have a large ripple-effect impact on supply chains, causing 4-6 weeks of disruptions. However, should a strike go ahead, containerised reefer cargo may end up stranded in ports without access to power. The potential for a strike comes as the southern hemisphere citrus and kiwifruit seasons come to an end and several weeks before the deciduous season begins. If the strike goes ahead and remains unresolved for several weeks, it will also affect citrus from Morocco and blueberries from Peru and Chile......../.........