East Coast Dockworkers Potential Strike 0 Update #1
October 1st looms large as the contract expiration is set to trigger a strike of the US East and Gulf Coast Longshoreman.
There has not been much news in the form of updates on negotiations coming out of the two parties, the Longshoreman and the US Maritime Alliance (USMX). What has been reported is that the parties are ‘not talking’ and the last offer was flatly refused. The USMX is a group of Ocean carriers and Terminal Operators, the Longshoreman obviously represent those individuals who unload the ships and do the port operations. While it is usually the case that no news is good news, we would prefer to have some news. There has not been a work stoppage affecting the US East and Gulf Coast ports since 1977. If it occurs it is certain to devastate the supply chains. If there is a strike, even for a day or two, we expect the effect to last for weeks. The list of demands is extensive and appears difficult to overcome. Deadlines often motivate and hopefully the two parties can either get to table or they are there and just not talking about it publicly.
Because this union covers such a significant amount of container and Ro/Ro traffic, an estimate of 43% of the US volumes, there is simply no where to put all of that volume. Where possible, we will make alternative arrangements. There is plenty of outside press on this topic, but as we approach the October 1st deadline, we will also send you short updates. Please speak with our team members if you have specific questions, and as usual, we will be communicating updates on your individual shipments.
September 16, 2024
