VentureSource Lead Logistics’ Post

Have you heard about the potential looming port strike that could affect East coast and Gulf ports? Contract negotiations between the ILA & US Maritime Alliance have stalled with the current agreement set to expire on September 30th. If an agreement is not made, the potential ripple effect on supply chains will be felt across the board as all East coast and Gulf ports will experience challenges. If you are currently shipping into US East Coast ports or Gulf, please do not hesitate to reach out. We can call through potential scenarios and how TRAFFIX can help you minimize costs and disruptions to your supply chain. Please feel free to shoot me an email at MDuFault@traffix.com or give me a call- 619-200-1161. https://lnkd.in/gbEyssWt #drayage #supplychain #logistics

The Looming Strike at East and Gulf Coast Ports The landscape of East and Gulf Coast ports is about to witness a significant shift, as highlighted in this insightful article from M.E. Dey & Co.. As we brace ourselves for potential disruptions, stakeholders must stay informed and strategize accordingly. Read more here: https://lnkd.in/gxSEFbbJ #supplychain #import #export #globalbusiness

Although the recent port strike has ended temporarily, it wreaked havoc on supply chains, causing delays, product shortages, skyrocketing prices, and job losses. Now businesses are facing ongoing challenges like processing backlogs, persistent inflation, and potential labor disputes. It’s crucial for businesses to act now and collaborate effectively to restore operations. Investing in Setlog's software isn’t just a smart move; it’s essential! Our software improves supply chain management by delivering real-time visibility into shipments and inventory, optimizing stock levels to avoid shortages or overstocking, and providing data-driven insights for better decision-making. Setlog streamlines logistics, enhances supplier collaboration, and offers organizations the flexibility to adapt to changing market conditions and disruptions. Don’t wait—act now to future-proof your operations! Explore more advantages that our software brings https://lnkd.in/deCFQcNn

On Tuesday, September 17, over 175 trade organizations, sent a letter to President Biden. The letter urged the administration to assist in facilitating ongoing master contract negotiations between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA). The urgency stems from the looming threat of a strike at container terminals from Maine to Texas if a new contract is not reached by the end of this month. The trade organizations warned that a strike at this juncture would have a devastating impact on the economy, particularly as inflation is currently on a downward trend. The last collective strike by the ILA in the East and Gulf Coast ports occurred in 1977. “With two weeks left until the ILA-USMX contract expires and the ongoing threat of a coastwide strike beginning on October 1, it is imperative that the administration engage with the parties to quickly negotiate a new deal or agree to continue negotiations while keeping the ports open and cargo flowing,” the trade organizations emphasized in their letter. The letter also praised the administration for its previous efforts in resolving labor disputes, such as those between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) on the West Coast, Class I railroads and their unions, and UPS and the Teamsters. The trade organizations highlighted that these negotiations were conducted without major disruptions to the supply chain, thanks to the administration’s involvement. In the event of a strike on October 1, the trade organizations requested that the Biden administration immediately work with both parties to resume contract negotiations and ensure there is no disruption to port operations and cargo fluidity if a new contract is not reached by the expiration date. #portstrikes #containerships #usmx #ILA

The recent port strike on the U.S. East and Gulf Coasts caused significant disruptions, despite being resolved quickly. While a tentative agreement was reached between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance, the strike left a ripple effect of delays that will impact supply chains through early 2025. Over 40 vessels remain anchored, awaiting clearance to unload billions of dollars in cargo. Additionally, more than 120 ships are en route to affected ports, compounding the backlog . While operations have resumed, the underlying labor tensions remain unresolved. A critical sticking point in future negotiations involves port automation. Both sides have agreed to extend the Master Contract until January 2025 to continue discussions, but without a clear resolution on automation, further disruptions are likely. These delays pose risks for industries reliant on time-sensitive imports, such as agriculture and pharmaceuticals . The strike also highlighted the vulnerability of U.S. supply chains, as congestion at East Coast ports could prompt carriers to divert traffic back to West Coast ports. This uncertainty in labor relations underscores the need for strategic planning to manage future disruptions, ensuring businesses remain resilient in an unpredictable logistics environment 

Shippers, are you prepared for a potential East and Gulf Coast port shutdown? With negotiations at a standstill and the White House opting not to intervene, now is the time to plan alternative logistics solutions. Learn more in our latest blog. #ILANegotiations #PortStrike #ContingencyPlanning

Automation Dispute Threatens North America's Ports: The Risk of a Potential ILA Strike:   The threat of a strike looms large over the US East and Gulf Coast ports as the International Longshoremen’s Association (ILA), representing more than 45,000 members, has halted contract talks with the United States Maritime Association (USMX). This move comes in response to Maersk's APM Terminal’s alleged violation of the current master contract by implementing an automated gate system at the Port of Mobile, Alabama, which eliminates the need for ILA labour to manually operate the gates. With the ILA’s contract with USMX ending on September 30, the potential consequences of a failed negotiation are significant. A strike could hinder operations at Atlantic and Gulf Coast ports, causing massive disruption to containerized imports and exports. Historical precedence from the ILWU's 13-day strike at Canadian West Coast ports in July 2023, which resulted in over $12 billion in trade being stuck at sea, highlights the potential severity of disruptions similar to the current situation with the ILA. The ILA demands a resolution on the automation issue before resuming talks. They also seek a wage increase, aiming for a hike exceeding the 32% negotiated by the ILWU last year, with some pointing to the 40% increase secured by the Great Lake District of the union. Analysts warn of the compounded impact on already fragile supply chains, exacerbated by ongoing global trade issues such as the Red Sea crisis, drought conditions at the Panama Canal, and recent spikes in container rates. At Drewry, we closely monitor these situations and provide insights to our clients, helping them develop robust, adaptive strategies in supply chain management. Stay informed, stay prepared.   #SupplyChain #PortOperations #MaritimeTrade #Drewry #ILAStrike #Automation #GlobalTrade

With just under two weeks until a potential strike that could cripple East Coast and Gulf Coast operations, stakeholders are urgently sounding the alarm. The International Longshoremen’s Association has threatened a coastwide strike on October 1 if a new contract isn’t finalized. Business leaders are warning that even a brief shutdown could trigger devastating disruptions throughout the supply chain and the broader economy. #supplychain #SCM #OSCA #Setlog Check out this article:

Free to view: The strike that shuttered US east and Gulf coast ports is over, at least for now, but that does not mean it has not had an impact. As returning workers unload the vessels that are already waiting, more ships will continue to arrive from Asia, Europe and Latin America, replenishing the queues, meaning it will take time for the jam to clear. There were 60 fully cellular containerships with total capacity of 363,620 teu waiting off east and Gulf coast ports on Thursday afternoon (including those at anchor or loitering at under five knots), according to ship-position data from Lloyd's List Intelligence. The average capacity of ships in the queues is 6,060 teu; nine waiting vessels have capacity of over 13,000 teu.   MSC has the most ships in the backlog, with 13. Maersk has nine waiting and Zim has four. Meanwhile, there is a high volume of inbound capacity en route to east and Gulf coast ports. More than 75 containerships are inbound on the Atlantic side, including those coming across from Europe, through the Caribbean from Panama, and via the Cape of Good Hope. In addition, there are also least 40 containerships that have already loaded in Asia that are en route across the Pacific to the Panama Canal, most of which will head toward the US east and Gulf coast ports. Read more analysis from our US senior reporter Greg Miller ➡️ https://lnkd.in/ej_a_Acn

As a potential strike at US East Coast and Gulf ports looms, shippers are seeking alternatives, with Canadian ports like Halifax and Montreal emerging as key options. With automation disputes threatening to disrupt cargo flows, global supply chains may face significant delays. However, Canadian ports could encounter their own challenges, such as longer transit times and bottlenecks. As we approach October 1st, the industry braces for potential impacts. #SupplyChain #ShippingIndustry #PortOperations #GlobalTrade #CanadianPorts #EastCoastStrike #SupplyChainDisruption Thomas Gronen May Yau Ashley Yeung Gaurav Thakur Timo Lorenz https://lnkd.in/evY3YQm5