 USEC port strike looms, as serious disruption feared |
Source |
American Shipper |
Post Date |
09/25/2024 |
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The threat of a pervasive port strike on the US east coast which would significantly disrupt global container trade is now only 14 days away.
US port workers, represented by the International Longshoremen Association (ILA), say preparations are underway for a possible general strike if no agreement on their collective bargaining agreement is found by 1 October.
Talks between the ILA and its counterpart, the United States Maritime Alliance (USMX), broke down in June. The Aliance confirmed on 13 September there had been no further negotiations.
A strike would hit all container ports from Maine to Texas. According to HSBC Bank, last year these US east coast and Gulf ports accounted for 57% of all US imports.
A strike on the east coast, which has grown container throughput since the pandemic, would have a different impact than previous strike threats on the west given the greater diversity of imports.
While west coast ports are dominated by Far East exports, US Gulf and East Coast ports have a Far East/Europe/Latin America import split which is closer to 55/25/20.
Far East imports could divert to the US west coast, albeit with the congestion and logistics issues this implies. However, the situation is much more complicated for European and Latin American imports.
The problem will be worsened by the fact volumes are currently booming on both coasts: Long Beach announced an all-time record for container volumes in August, citing diversions and shipper concern about future tariffs. Meanwhile, both Los Angeles and NewYork/New Jersey recorded their busiest July? on record, as shippers brought forward shipments to avoid delays later in the year.
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