US Port Strikes Warning.
US Port strikes affecting East and the Gulf Coast are now a real possibility as talks have broken down between the Unions, represented by the International Longshoreman Association (ILA) and employers resented by the United States Maritime Alliance (USMX). The current labour agreement is due to expire on the 30th September and unless the two parties can agree on key issues such as wage increases and protection against port automation strikes are becoming more increasingly likely. It is believed that strikes could take place as early as the 1st October.
If strikes were to go ahead this would lead to heavy disruption and significant delays in cargo movement.
It is estimated that the East Coast /Gulf ports handle approximately 55.5% of US container import volumes year to date.
Whilst imports from Asia can divert to the West Coast ports, that would put significant strain on the port and landside infrastructure.
European exporters sending cargo to the US would be even more impacted as there are few viable options other than to ship cargo to the East Coast. It is likely that shippers would be stranded as any alternative options are well short to handle any increased capacity.
This will undoubtedly lead to port congestion, substantial delays, container shortages and increased shipping costs for exporters to the US market.
One possibility to avoid a strike is for the US government to invoke the Taft-Hartley Act with a court order for an 80-day cooling off period, which happened in the 2022 in relation to West Coast ports.. However, this action may be delayed as they explore other options, considering the potential political ramifications ahead of the election.
Whatever happens, Pinnacle will closely monitor the situation and keep our customers informed of any developments. Should the strikes occur we will help to try and find alternative solutions wherever possible and minimize the impact on your supply chain.
If you have any questions or would like any more information regarding shipping, please do not hesitate to contact us.