NEW YORK – The Port of New York-New Jersey is suggesting shippers wind down all cargo enterprise because it prepares for a large strike subsequent week, when some 45,000 East and Gulf Coast dockworkers are set to stroll off the job.
“Though we stay hopeful that an settlement can be reached between the ILA and USMX previous to the expiration of the contract at 11:59 p.m. on Monday, Sept. 30, preparations are underway for a possible strike efficient 12 a.m. Tuesday, Oct. 1,” port officers stated Tuesday.
“It’s important that you simply do every part attainable to select up your import cargo earlier than shut of enterprise on Monday, Sept. 30, as there can be no alternatives to ship any cargo as soon as a strike begins,” port officers continued.
Contract negotiations between the 2 events have fully stalled, with no additional talks at the moment on the schedule. Key obstacles have been relating to wages and elevated automation.
Final week, the Biden Administration said it would not block the strike. Nonetheless, it may nonetheless assist mediate. According to Reuters, the U.S. Dept. of Labor has reached out to the USMX, suggesting the Administration desires to help in a profitable mediation. Final yr, the Biden Administration helped mediate a profitable negotiation in the same ordeal at West Coast ports.
Customs dealer and procurement agency CV Intl., which does enterprise with many furnishings importers, stated final week {that a} work stoppage appears probably.
“Whether or not the strike lasts for a couple of days or longer, congestion will trigger delays for shippers throughout the nation,” stated Rachel Shames, vice chairman of pricing and procurement.
Shames predicts import volumes to be softer within the coming months, making it more durable for carriers to maintain spot charges excessive.
“Demand for freight into West Coast ports has elevated forward of the East and Gulf Coast contract deadline, although general quantity from Asia to the US has slowed from the height in June/July,” she stated. “Charges to all U.S. locations are down significantly as properly from their current peak. China factories and workplaces can be closed for the primary week of October, the Golden Week vacation, and ocean carriers have carried out vital clean sailings in response to the anticipated additional slowdown.
“Carriers are hoping to stem the tide of fee reductions; they’ve tried to take care of two short-term fee ranges, a typical FAK stage and a extra aggressive spot stage that applies by particular vessel.”
She urged shippers to plan forward, talk quarterly forecasts and guarantee bookings are positioned a minimum of three to 4 weeks earlier than crusing.
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