Negotiations Farther Apart Than Anticipated
The International Longshoremen Association (ILA) is ramping up its mobilization efforts across its local chapters, preparing for a potential work stoppage that could begin as early as October 1 if there is no new master contract formed with port employers United States Maritime Alliance (USMX).
The ILA, representing thousands of dockworkers across the East Coast and Gulf Coast, has been in a prolonged standoff with the USMX over contract negotiations, which have remained at an impasse since the discovery of an automated gating system at Mobile, AL port earlier this year.
ILA President, Harold Daggett, has remained steadfast in making sure that ILA members get wage increases over the next six years that reflect the hard work and massive profits that port operators enjoyed during the COVID19 pandemic as well as pushbacks against new automation introduced at ports.
West Coast Concerns
With less than 15 days until a port shutdown on October 1st, Worldwide Logistics Group (WWL) continues to encourage conversations with clients to lockdown a strategy to minimize supply chain disruptions.
Rerouting shipments through U.S. West Coast ports is the obvious option, but this comes with challenges. Worldwide Logistics Distribution warehouses in Torrance, California and San Bernardino, California stand ready to receive the upcoming volume.
The competition for space and berthing times at West Coast terminals have already seen marked increases over the course of the summer as tightened vessel capacity and soaring rates have shifted some importers shipping strategies. Importers with time sensitive cargo have already begun migration away from shipping direct to US East Coast ports in favor of US West Coast rail or road options.
Building Contingency Plans
The coming days will be critical as the industry waits to see whether the deadlock between the ILA and USMX can be resolved. With the strike deadline fast approaching, there is increasing speculation about whether the U.S. government might intervene to avert a crisis. However, as of now, no such action has been taken, leaving the industry to brace for significant disruption.
Key options that Worldwide Logistics Group suggests to mitigate supply chain delays:
- Utilizing Canadian ports (Halifax, Montreal, St. John) for entry into North America
- Transloading cargo to over-the-road at Seattle, Tacoma or Oakland in addition to Los Angeles
- Expedited services via rail to US East or Gulf Coast destinations to avoid anticipated congestion
- Specialized liner services from Northern Europe to bypass ports with ILA labor
If you are interested in weighing your shipping strategy to mitigate delays during the event of a strike, please reach out to your WWL representative for more information.