The specter of a serious strike at East and Gulf Coast ports is looming extra ominously after contract negotiation talks broke down final week.
Some 85,000 dockworkers, unionized below the Worldwide Longshoremen’s Assn. (ILA), will see their labor contracts expire Oct. 1 with the U.S. Maritime Alliance (USMX). Echoing final yr’s related scenario on the West Coast, a key hang-up to a profitable renegotiation has been relating to automation.
The ILA canceled talks after discovering that APM Terminals and Maersk Line are utilizing an auto gate system, which autonomously processes vans with out ILA labor and allegedly violating the coast-wide grasp contract presently in place. This technique, initially recognized on the Port of Cellular, Ala., is reportedly being utilized in different ports as effectively, ILA stated.
“There’s no level making an attempt to barter a brand new settlement with USMX when certainly one of its main corporations continues to violate our present settlement with the only real purpose of eliminating ILA jobs via automation,” stated ILA President Harold J. Daggett, who serves as chief negotiator for the union.
The ILA stated it is not going to meet with USMX till the problem is resolved.
Like what was seen final yr and in 2022 on the West Coast however in reverse, fears of a strike might trigger shippers to divert their cargo to the West Coast.
“It’s additionally attainable that volumes via the East and Gulf Coast could improve forward of Oct. 1, if involved shippers determine to front-load extra cargo prematurely of a possible strike,” stated freight forwarder and logistics supplier CV Worldwide in a weblog submit.
The information comes at a time when ocean container rates are rapidly rising on both coasts, straining importers in all industries.
Spot charges have now risen near 60% in six weeks, presently sitting at a mean of $4,801 per 40-foot container, in keeping with tracker Drewry. That’s 202% increased than the identical week final yr. Common charges from Shanghai to Los Angeles are $6,025, whereas Shanghai to New York sit at $7,299.
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