U.S. Dockworkers Strike "Looks Certain"

As October 1st approaches, the likelihood of a significant work stoppage at major U.S. East and Gulf Coast ports is growing. Negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) have stalled over critical issues, including wage increases and terminal automation.

• Strike "looks certain" for October 1st (according to shipping analysts at Linerlytica)
• 28.4 million TEUs handled by affected ports in 2023
• 550,000 TEUs at risk each week of strike

Why It's Happening

Last week, the USMX said in regards to creating a new contract, “While there are fewer than three weeks remaining until the expiration of our current agreement, if the ILA is willing to meet it is still possible to agree to terms on a new master contract.

“We need to sit down and negotiate a new agreement that avoids an unnecessary and costly strike that will be detrimental to both sides.”

When it pertains to automation ILA is strongly against it:

"We're completely against any type of robot taking over an actual human being's job," says Dennis Daggett, ILA exec VP.

The Unease within the Industry

As the strike looms some expectations are:

• Canadian ports seeing a traffic surge
• Halifax and Montreal likely to benefit
• But new challenges arise:
  • Longer transit times
  • Double border crossings
  • Potential bottleneck at Port Huron, Michigan

Frank Kenney of Cleo notes:

"The combination of factors – added transit days, double border crossings, maritime operations in Halifax and rail in Huron – will not be optimal."

The Big Picture

This strike could impact 1.7% of the global containership fleet each week. Shippers are scrambling to find alternatives, but solutions come with their own hurdles. As the clock ticks down, all eyes are on the negotiations. Will a last-minute deal save the day, or are we headed for a major supply chain catastrophe?

Stay tuned for updates on this developing story.

Source: The Load Star