Supply Chain Braces for Ports Strike
Manufacturers and shippers are working to minimize shipping disruptions in the event of a strike by the International Longshoremen鈥檚 Association at major East Coast and Gulf Coast ports next month ().
What鈥檚 going on: 鈥淭he [labor] contract between the ILA and the United States Maritime Alliance, which negotiates on behalf of management of the ports, terminals and shipping lines, is due to expire at midnight on Sept. 30. The contract covers 25,000 workers and ports stretching from Boston to Houston, the ILA said.鈥
- The threat of a strike has for months as members of the ILA and the USMA disagree on the terms of a new worker agreement. Union members have said they are prepared to strike if a new contract is not reached by the end of the month.
Retailer response: To head off strike-related shipping delays, retailers have been sending holiday and seasonal goods early.
- The result: U.S. cargo shipments were up 12.9% last month from August 2023 ().
Why it鈥檚 important: The U.S. East and Gulf coasts handle approximately 43% of all goods imported to the country, supply chain firm ITS Logistics told FreightWaves. That鈥檚 billions of dollars in everything from vehicles to food to agricultural products.
The 17吃瓜在线鈥檚 take: 鈥淎ny disruption resulting from the 鈥 negotiations would deal an immediate blow to the manufacturing supply chain,鈥 17吃瓜在线 Managing Vice President of Policy Chris Netram told CNBC in a quote cited by FreightWaves.
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