ShipsDNA Portal’s Post

CRS The Port Strike’s Effect on Maritime Commerce [1 October 2024] https://lnkd.in/germgWV5 [excerpt] The strike by port dockworkers (commonly called longshoremen) at East and Gulf Coast ports has raised concerns about the economic impact should the strike last more than a few days. The International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance, Ltd., the employers representing ocean carriers and port terminal operators, have not been able to renew their six-year labor-management agreement that expired on September 30, 2024. Disagreement over wage increases and port automation reportedly are the main sticking points. The ILA represents longshoremen at East and Gulf Coast ports that handle containerized cargo—the loading and unloading of container ships—as well as “car carrier” ships that carry automobiles. The strike will not shut down other port activity, such as the loading/unloading of oil and gas tankers, and dry bulk vessels carrying products like grain and coal in bulk form. The ILA also handles supplies for cruise ships; reportedly, they will continue to work these ships to avoid disrupting the public’s travel plans.

This week, dockworkers across the United States and the Port of Montreal have launched strikes that are expected to severely impact North American supply chains. On Monday, around 350 workers at the Port of Montreal initiated a 72-hour shutdown of two terminals that handle over 40% of the port’s container shipping. Yesterday, approximately 45,000 members of the International Longshoremen’s Association walked off the job at 36 U.S. ports. This marks the union’s first strike since 1977, and its effects could lead to widespread shortages and price increases across Canada and the U.S.   Saskatchewan, which exports 65% of its production, heavily relies on these international ports to transport food, fuel, and fertilizer to global markets. Despite the tireless work of Saskatchewan people to ensure goods are shipped on time, multiple strikes at railways and ports this year have tarnished our international reputation as reliable trading partners. This must change.    The Chamber calls on all parties to take immediate steps to end these disruptions to our trade infrastructure. We also urge the federal government to take proactive measures, including binding arbitration, to resolve the strike at the Port of Montreal and prevent prolonged damage to Saskatchewan’s economy.   Learn more: https://lnkd.in/dVvBzqzw

⚓ In a strategic move, the International Longshoremen's Association (ILA) has decided to postpone its planned strike until January 15, 2025, allowing for continued negotiations with the United States Maritime Alliance (USMX). This decision demonstrates a commitment to finding a mutually beneficial solution while mitigating potential economic disruptions. 🔑 Key Points Strike Suspension: The ILA's decision to suspend the strike provides a crucial window for both parties to engage in productive dialogue and potentially reach a new agreement. Economic Impact: The suspension of the strike is particularly significant given that East and Gulf Coast ports handle approximately 36% of U.S. containerized cargo volume. A prolonged work stoppage could have severe economic consequences, potentially costing billions in lost economic activity. Negotiation Focus: The talks are expected to center around critical issues such as wages, benefits, and the impact of automation on job security. These discussions will shape the future of the maritime industry and its workforce.Industry Implications This development is likely to be welcomed by businesses reliant on maritime trade, as it reduces uncertainty and potential supply chain disruptions during the crucial holiday shopping season. However, stakeholders should remain vigilant and prepare contingency plans in case negotiations fail to produce a satisfactory outcome by the new deadline. The maritime sector continues to face challenges, including the ongoing effects of the COVID-19 pandemic, global economic uncertainties, and the push for technological advancements. This negotiation period presents an opportunity for both labor and management to address these issues collaboratively and set a course for a more resilient and competitive industry. #MaritimeLabor #PortOperations #SupplyChainManagement #LaborNegotiations #EconomicImpact #IndustryInnovation #HiLoStaffing https://lnkd.in/e4i6pRYx

So I think I was too optimistic about the American port strike yesterday. Trump and Biden are both siding with the union (ILWU). Part of the politics of this is that the shipping companies are foreign owned. Leading members of the USMX, on the other side of the strike, include Maersk (Denmark), MSC (founded by Italians, headquartered in Switzerland), and COSCO (Chinese state-owned). So this is just economic nationalism. The Biden Administration is pressuring shipping companies not to raise prices or charge surcharges. This is a horrible idea. I used to lead the team that monitored shipping bottlenecks for the World Bank beginning with COVID. Every time there is a bottleneck (2021 global post-COVID, the recent Panama Canal drought, the ongoing Houthi attacks in the Red Sea), lots of ships need to be re-routed over long distances, with long delays (eg going around the Cape of Good Hope or Cape Horn.) Market prices for moving containers are essential in solving this problem. Suppressing price signals in a crisis will make the bottlenecks worse. We know what the short term response to the strike is - re-route to the West Coast, or to the coasts of Canada. One of the things we learned in the "Christmas present crisis" of 2021 was that the ports of Los Angeles and Long Beach are rated as some of the least efficient in the world. (Incredulous World Bank managers had to be shown the evidence on this.) So the West Coast will be a stress point.

🚢 Navigating Uncertainty: The Impact of the Current Port Strike 🚢 As the ongoing port strike continues to affect supply chains globally, it’s crucial for businesses to adapt and find innovative solutions. This situation highlights the importance of resilience in logistics and the need for proactive contingency planning. Union dock workers at 36 East and Gulf Coast ports went on strike early Tuesday amid an impasse in negotiations over a new contract with a group representing port employers. The International Longshoremen's Association (ILA), which represents 45,000 dockworkers, began its first strike since 1977 after its six-year contract with the U.S. Negotiations between the ILA and USMX have been deadlocked thus far over the union's demands related to wage hikes and compensation, as well as protection from automation at ports. U.S. seaports from Maine to Texas will be impacted by the strike. Those ports collectively handle about half of  U.S imports and are also critical hubs for exports from American businesses.  Imports of cars and auto parts, agricultural products like bananas, machinery, fabricated steel, furniture, apparel and more will be affected.  East and Gulf Coast ports also handle significant percentages of exported cars and auto parts, pharmaceutical products, beef, pork, poultry, eggs, wood, plastics and other products or commodities. An analysis by J.P. Morgan estimated the daily cost of a port strike by East and Gulf Coast port workers would cost the U.S. economy between $3.8 billion and $4.5 billion per day as operations slow. #SupplyChain #Logistics #PortStrike #BusinessContinuity #Innovation

U.S. East and Gulf Coast Port Strike and Biden Administration: It had been anticipated that President Biden would intervene in the dockworkers' strike at the U.S. East and Gulf Coast ports by invoking the Taft-Hartley Act. However, Biden's statement supported the International Longshoremen’s Association by emphasizing that negotiation between unions and employers is essential for fair wages. Biden highlighted that ocean carrier profits increased during the pandemic and argued that it's only fair that dockworkers receive meaningful wage increases. He also warned against potential increasing prices by carriers, particularly due to this following Hurricane Helene. White House representatives have stated that the U.S. Maritime Alliance needs to present a better offer to the ILA, suggesting the current 50% salary increase proposal is not enough. The ILA has stopped formal negotiations, claiming USMX's offers are too low, while USMX insists they have made fair proposals. The strike has caused long lines of ships at the ports, with signs of a backlog potentially worse than it was during the pandemic. Radius will continue to keep you updated as this situation progresses. #ILAStrike #PortStrike #USMX #RadiusInternational #Freightforwarder #Logistics

How will a port strike affect your operations and supply chain? What are the risk factors sustaining and increasing risk impacts? Read our latest blog on the U.S. dockworker strike for risk and mitigation insights and preparing for future disruptions. The recent U.S. port strike, which began on October 1, 2024, at major East and Gulf Coast ports, has been temporarily resolved after three days of negotiations. The strike, led by the International Longshoremen's Association (ILA), sought a halt to automation and a 77% wage increase. A temporary agreement was reached with a 62% wage hike, with further discussions expected in January 2025. Contact us for detailed risk analytics on indicators contributing and resulting from disruptions. https://lnkd.in/eF3RgrY5 #PortStrike #SupplyChain #RiskManagement #Logistics #Manufacturing #GeoPoliticalRisk #BusinessContinuity #SupplyChainDisruption

📢 Freight Alert! The International Longshoremen’s Association (ILA) has announced a strike mobilization plan if they do not reach a desired contract agreement with the United States Maritime Alliance (USMX) by the current agreement’s expiration on September 30, 2024. ILA President Harold Daggett emphasized the union’s preparedness to strike if necessary. The looming threat of a strike is prompting shippers to move cargo ahead of potential disruption, driving up cargo volumes at ports. Industry organizations are urging both ILA and USMX to resume negotiations in order to avoid disruption during the peak shipping season. For more information please click on link https://lnkd.in/eMY8Tr5B #procurement #interiorsprocurement #carrolladams #freight #hospitality

East and Gulf Coast Ports Reopen After ILA and USMX Agreement! 🚢 The recent port strike has officially ended, with the ILA and USMX reaching a tentative agreement that includes a 61% wage increase and a contract extension through January 2025. While operations are back in motion, the strike did cause significant backups, and we anticipate that carrier port fees may continue into the foreseeable months. In addition, we’ve been seeing consistent delays with rail shipments, and the strike is expected to prolong these issues. To prevent further delays, we recommend avoiding rail transportation for time-sensitive shipments. 🦊 https://lnkd.in/eMQdBi_h #LogisticsUnusual #SupplyChainUpdate #PortStrike

Port Strike Ends – Workers to return to work Oct 4th after a tentative deal was reached between the International Longshoremen’s Association and the U.S. Maritime Alliance. The agreement ends a strike that had disrupted ports along the East and Gulf Coasts, impacting the supply of goods. Although operations will resume, the deal must still be ratified by union members. If rejected, the strike could restart, straining the economy and affecting product availability. #supplychain #logistics #ports https://lnkd.in/gU8Sfc-e