Steve Woolley’s Post

Check out Dominique Dwor-Frecaut's latest Quick Take: US Dockers Strike to Have Limited Macro Impact Summary -US dockworkers in ports accounting for 60% of maritime freight have gone on strike. -The impact on growth and inflation is likely to be limited as any deep disruption would likely see the Biden administration intervene. Market Implications -I still expect two more 25bp Federal Funds Rate (FFR) cuts in 2024. Read full article here: https://lnkd.in/erUiJc-9

🚢 Potential Strike at US East and Gulf Ports: What You Need to Know 🚢 A looming dockworkers’ strike at 36 ports from Maine to Texas could significantly disrupt US shipping traffic, affecting 60% of the nation’s trade. If no contract deal is reached by next week, 45,000 members of the International Longshoremen’s Association (ILA) may walk out, marking their first strike in nearly 50 years. This could cost the US economy up to $7.5 billion per week. Impact on Major Ports: The strike could close five of the ten busiest ports in North America, including New York and Charleston. Economic Consequences: Over 50% of US containerized cargo imports and 15% of the global container fleet could be affected. Wage Demands: The ILA is pushing for a 77% wage hike over six years, significantly higher than the 32% raise West Coast dockworkers received last year. Holiday Season Pressure: With $34 billion worth of goods en route to affected ports, shippers are racing to deliver before a potential work stoppage disrupts holiday shopping inventories. Cargo Diversions: Carriers are already diverting shipments to West Coast ports, anticipating delays of 4 to 6 weeks. While some non-port activities like inland rail ramps may continue, port closures will significantly reduce rail services. The situation remains fluid, with ongoing discussions on managing operations if a strike occurs. Stay tuned for updates as this situation develops. 📦🚛 Source: JOC, Freight Waves, Shipping Watch, USMX, Sherwood News #SupplyChain #Logistics #Shipping #PortStrike #TradeDisruption #Economy #HolidaySeason #Freight

• East coast dockers strike at 36 ports from Texas to Maine, led by the International Longshoremen’s Association • Strike affects 60% of America’s containerized trade, disrupting billions of dollars in goods • Six of North America’s ten busiest ports are shut, with ships redirected to Mexico • Talks broke down over wages and automation fears; union rejected a 50% wage increase, demanding more • Dockers are among the highest-paid blue-collar workers, with some earning $200,000+ in 2020 • Automation is a key issue; US ports are less automated and productive than global counterparts • President Biden faces a dilemma, advocating for unions but facing a non-endorsement from the longshoremen • Strike could lead to inflation pressures if prolonged, impacting economic recovery plans #PortsStrike #UnionPower #TradeImpact

As negotiations between dockworkers and port employers hit a standstill, a potential strike could disrupt major U.S. East and Gulf Coast ports starting on October 1. 𝗛𝗲𝗿𝗲’𝘀 𝘄𝗵𝗮𝘁 𝘆𝗼𝘂 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗸𝗻𝗼𝘄: 🔹 Union demands: Dockworkers, represented by the International Longshoremen’s Association (ILA), are seeking a 77% wage increase over six years. 🔹 Strike timeline: The current labor contract expires on September 30, with a strike threatening ports from Maine to Texas. 🔹 Impact on supply chains: Major ports like New Jersey, Virginia, Savannah, and Houston—critical hubs for holiday-season imports—could face significant delays. 𝗥𝗶𝘀𝗶𝗻𝗴 𝗧𝗲𝗻𝘀𝗶𝗼𝗻𝘀: 🔸 Concerned stakeholders: Companies like Target, Home Depot, and Best Buy, along with industry leaders, are urging the Biden administration to intervene. 🔸 Shipping costs surge: The potential strike comes as shipping rates have already doubled. The cost to ship a 40-foot container from Asia to the U.S. East Coast rose to $9,518 by late August. 🔸 Cargo volumes spike: Importers have pulled forward orders to avoid delays, further straining shipping networks already impacted by global disruptions. As the industry braces for potential disruptions, ensuring your supply chain stays fluid will be critical. Our logistics solutions offer the flexibility and resilience needed to adapt to these changes, providing reliable transport and communication to keep your goods moving efficiently, regardless of the obstacles ahead. We’re dedicated to supporting our partners with seamless, end-to-end services to mitigate the impact of disruptions like these. 🌐 a2b-logistics.us | 📞 877-963-3111 #logistics #logisticssolutions #logisticsprovider #shippingsolutions #supplychain

U.S. dockworkers at ports along the East and Gulf Coasts have launched their first major strike in decades after failing to reach a labor agreement by the Oct. 1 deadline. The United States Maritime Alliance and the International Longshoremen’s Association , which represents 45,000 dockworkers, had been negotiating throughout the summer, but talks broke down over issues including wages and automation. The strike could have a significant economic impact, with The Conference Board estimating a one-week strike could cost the U.S. $3.78 billion, affecting 57% of container volume. https://lnkd.in/gNesjH5m

Is your company at risk of being impacted by the potential US East and Gulf Ports Strike? 🚢 Check out below details from my colleague Josh Harris

🚨 Are You Prepared for the US East & Gulf Coast Port Strike? 🚨 With labor talks between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) still unresolved, a potential strike could disrupt operations across 36 U.S. ports as early as October 1. These ports are responsible for handling 𝟒𝟑% 𝐨𝐟 𝐚𝐥𝐥 𝐔.𝐒. 𝐢𝐦𝐩𝐨𝐫𝐭𝐬, including critical locations like Charleston, Houston, and Miami. This could create a domino effect across the global supply chain, causing backlogs, equipment shortages, increased shipping costs, and an economic downturn. 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄 The strike stems from unresolved labor contract negotiations between the ILA and USMX as labor contracts ended in September 2024. Disagreements over labor wages, job protections, and concerns about automation are at the heart of the dispute. The ILA argues that inflation has severely impacted their wages, and they are demanding better compensation to keep up with rising living costs. Union leaders have criticized the current proposals, stating that USMX’s offer does not sufficiently address the economic pressures workers face, and they are firmly against the idea of automation replacing dockworkers. 𝗪𝗵𝗮𝘁’𝘀 𝗮𝘁 𝘀𝘁𝗮𝗸𝗲?  The strike can cause massive disruptions at East and Gulf Coast ports, with repercussions across any industries dependent on U.S. shipping routes. A staggering $𝟮𝟬𝟬 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 𝗶𝗻 𝗴𝗼𝗼𝗱𝘀 𝗮𝗻𝗱 𝗽𝗿𝗼𝗱𝘂𝗰𝗲 and over 𝟱𝟬𝟬,𝟬𝟬𝟬 𝗷𝗼𝗯𝘀 could be affected if an agreement is not reached. Meanwhile, companies are already rerouting shipping containers to West Coast ports over concerns about the strike.  East and Gulf Coast ports handle around 600,000 TEUs (twenty-foot equivalent units) per week. Every day of the strike could cause 𝟱 𝘁𝗼 𝟭𝟬 𝗱𝗮𝘆𝘀 𝗼𝗳 𝗯𝗮𝗰𝗸𝗹𝗼𝗴, with some experts predicting it could take 𝘂𝗽 𝘁𝗼 𝟳𝟬 𝗱𝗮𝘆𝘀 to return to normal operations. This strike would hit sectors such as agriculture, chilled goods, and large-scale exports hard, leading to 𝘀𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁 𝘀𝘂𝗽𝗽𝗹𝘆 𝗰𝗵𝗮𝗶𝗻 𝗱𝗶𝘀𝗿𝘂𝗽𝘁𝗶𝗼𝗻𝘀, 𝗲𝗾𝘂𝗶𝗽𝗺𝗲𝗻𝘁 𝘀𝗵𝗼𝗿𝘁𝗮𝗴𝗲𝘀, 𝗮𝗻𝗱 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱 𝘀𝗵𝗶𝗽𝗽𝗶𝗻𝗴 𝗰𝗼𝘀𝘁𝘀. Even if the strike is halted, this will affect the future state of the market. 𝗛𝗼𝘄 𝘁𝗼 𝗣𝗿𝗲𝗽𝗮𝗿𝗲  Navigating this disruption requires proactive supply chain management. Craft’s Supplier Risk Management platform empowers businesses with real-time visibility into supply chain risks, allowing you to 𝘀𝘁𝗮𝘆 𝗮𝗵𝗲𝗮𝗱 𝗼𝗳 𝘁𝗵𝗲 𝗱𝗶𝘀𝗿𝘂𝗽𝘁𝗶𝗼𝗻 and secure your operations. Contact us to quickly get started: https://lnkd.in/gMScTh8u #PortStrike #SupplyChain

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

October 1 is approaching fast. A strike in East / Gulf Coasts would be a supply chain nightmare. I believe to make a deal would be much more difficult if we were in the conditions of Q4 2023 where ocean carriers were expecting to lose money until end of 2025. Luckily ocean carriers are all announcing high profits for H1 2024, and it looks like the trend will continue for ocean carriers. Union is demanding both wage increases and less automation, are the major pain points for carriers, will see what this will bring.

US dockworkers have launched a major strike, disrupting operations at major ports and threatening significant economic impacts. Key points: 45,000 workers on strike: The strike affects operations at over 30 container ports. Disruptions to supply chains: Delays in holiday merchandise and perishable goods are expected. What do you think about the strike? How will it impact businesses and consumers? Share your thoughts below. #dockworkers #strike #ports #supplychain #logistics #transportation #economy #union #labor #negotiations Learn more about this news in https://lnkd.in/gNesjH5m