Retailers and other leading trade associations are urging US east coast and Gulf Coast box terminal bosses and unions to hold talks to avoid potential strike action in January.
A temporary contract between the International Longshoremen’s Association (ILA) and US Maritime Alliance (USMX) agreed in October after three days of strikes is due to expire on January 15, sparking concerns of further industrial action.
In the past, industrial action at US ports has resulted in modal shift to air as shippers have looked to avoid port logjams.
The US National Retail Federation (NRF) and a coalition of 267 other trade associations wrote to both groups to express their concerns about a potential second strike, which could take place just days before the government transitions to the new Trump administration.
“We know significant issues remain between the parties," the letter said. "However, we continue to believe the only way to resolve these issues and come to an agreement is to actually stay at the negotiating table.
"The continuing start and stop of the negotiations leads to further uncertainty in the supply chain, which continues to cause challenges. The three-day strike in October had a significant impact on supply chain stakeholders that rely on the east coast and Gulf Coast ports.
"The additional costs from mitigation efforts as well as post-strike resumption are still being felt. Companies have continued to implement mitigation strategies because of the ongoing threat of another strike in mid-January if a new contract is not achieved.”
The logjams created by the three days of strike action that occurred in October were thought to have taken a few weeks to clear.
It is estimated that for every day a port is closed, it will take around five days for supply chains to return to normal.
There had been an expectation that prolonged strike action would result in some modal shift to air as companies looked to transport urgently needed goods into the country.
Charter brokers had even been reporting a rise in enquiries ahead of the end of the contract on October 1.
https://www.aircargonews.net/business/supply-chains/us-port-strikes-end-as-temporary-agreement-reached/
