US - Worker strike at East coast and Gulf coast ports - October 1, 2024

[Commonground]

September 17, 20244:49 PM EDTUpdated 37 min ago

LOS ANGELES/WASHINGTON, Sept 17 (Reuters) - U.S. President Joe Biden does not intend to invoke a federal law to prevent a port strike on the East Coast and Gulf of Mexico if dockworkers fail to secure a new labor contract by an Oct. 1 deadline, an administration official said on Tuesday.
The International Longshoremen's Association, negotiating on behalf of workers at three dozen U.S. ports from Maine to Texas that handle about half of the nation's ocean imports, warned again on Tuesday that its members are prepared to stop work in two weeks.

Their current six-year agreement with the United States Maritime Alliance (USMX), which includes employers like Maersk's (MAERSKb.CO), opens new tab APM Terminals and SSA Marine, expires on Sept. 30.
U.S. presidents can intervene in labor disputes that threaten national security or safety by imposing an 80-day cooling-off period under the federal Taft-Hartley Act, forcing workers back on the job while negotiations continue.

"We've never invoked Taft-Hartley to break a strike and are not considering doing so now," the Biden administration official told Reuters

Continued: https://www.reuters.com/business/wor...ys-2024-09-17/

[Commonground]

US East and Gulf Coast Ports Brace for Potential Strike as Container Imports Surge

September 17, 2024
[bolding mine]
Excerpts:

Christian Roeloffs, co-founder and CEO of Container xChange, warns, “The possibility of strikes in US East Coast and Gulf Coast Port adds uncertainty for container shipping professionals doing business in the US.” He advises companies to “anticipate short-term spikes in demand for leased containers as retailers rush to secure goods ahead of potential disruptions, particularly for seasonal inventory and industrial shipments”.
-snip-
HSBC Global Research reports that a potential strike could impact over 50% of US imports and 15% of the global fleet. The report warns that imports from Europe and Latin America could be stalled, while diversions of Asian imports could congest the West Coast.
-snip-
Maersk has warned that even a brief strike could result in weeks of recovery due to accumulated backlogs.

However, Roeloffs notes that strong U.S. inventories due to earlier order pull-forwards might mitigate some risks. “This stockpile will act as an essential buffer, mitigating the risk of container rates spiking dramatically due to the strikes”.

https://gcaptain.com/us-east-and-gulf-coast-ports-brace-for-potential-strike-as-container-imports-surge/

[Commonground]

An East Coast port strike could coincide with holiday shipping and shopping

September 16, 2024

[bolding mine[
Excerpts :

Other retailers planned ahead by ordering holiday inventory early, so it would get to East Coast ports before a potential strike. “So we saw in May and June and July, we saw significantly higher volumes than we would normally see,” Murphy said.

But stocking up comes with risk, said Steve Scales, managing director at AlixPartners. “The further out they are having to make buys, the more they are reliant on forecasts that are far out as well,” he said.
-snip-

“For every week of a strike, we would expect at least one month of disruption and chaos and backlogs,” she said.

That chaos won’t be felt evenly across the retail economy, said Terry Esper, professor of logistics at Ohio State University.

“If there is a concern that I have, it would definitely be more for the medium-sized enterprises and of course, small businesses,” he said.

Businesses that have less flexibility and capital to plan ahead.

...https://www.marketplace.org/2024/09/...hipping-cargo/

[Commonground]

East Coast Port Strike Will Have ‘Catastrophic Effect’ If Agreement Isn’t Reached
September 10, 2024

[bolding mine]
Excerpt:

John Janson, vice president of global supply chain for SanMar – PPAI 100’s No. 1 supplier, which accounted for nearly $4 billion in revenue in 2023 – told PPAI Media that, if a resolution isn’t reached, the ramifications will extend far beyond just the promo industry.

“It would have a catastrophic effect on the overall U.S. economy,” Janson says.

• If the affected ports were to close, it would impact 43% of U.S. imports.
• Sea Intelligence estimates the ports to account for $3.7 billion per day.

As things stand in the second week of September, the two sides don’t appear close to bridging the gap in negotiations, as the port owners, represented by the United States Maritime Alliance, suggest that the ILA is operating as though a strike is forthcoming.

https://www.ppai.org/media-hub/east-coast-port-strike-will-have-catastrophic-effect-if-agreement-isnt-reached/

[Commonground]

From Dairy Herd Management

As a Potential Strike at East Coast and Gulf Coast Ports Looms, Here's What You Need to Know

Excerpt
The contract between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) is set to expire on Sept. 30. Negotiations between the two parties have stalled, raising concerns about a possible strike starting Oct. 1

... The strike would impact retailers, manufacturers, and farmers by delaying shipments and potentially shutting down production lines....

https://www.dairyherd.com/news/labor/potential-strike-east-coast-and-gulf-coast-ports-looms-heres-what-you-need-know

[Commonground]

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[Commonground]

Media "The Biggest Wild Card In The Presidential Election": Just Days Left Until A Crippling Port Strike Paralyzes The East Coast

"The Biggest Wild Card In The Presidential Election": Just Days Left Until A Crippling Port Strike Paralyzes The East Coast

SUNDAY, SEP 22, 2024
Late last week, the CEO of Flexport - one of largest US supply-chain logistics operators - warned that "the biggest wild card in the presidential election that nobody’s talking about? The looming port strike that could shut down all East and Gulf Coast ports just 36 days before the election.”


With just over a week to go until D-Day, authorities are gearing up as a threatened strike by dockworkers at ports along the East Coast and Gulf Coast draws closer.

The Port Authority of New York and New Jersey is "coordinating with partners across the supply chain to prepare for any impacts" from a possible work stoppage by workers represented by the International Longshoremen's Association as they negotiate with the United States Maritime Alliance (USMX), a Port Authority spokesperson told CBS MoneyWatch on Friday.

continued: https://www.zerohedge.com/economics/...ng-port-strike

[Commonground]

Georgia: Dockworkers’ union strike threat could close Georgia port terminals
10 minutes ago
SAVANNAH ― The Georgia Ports Authority will shutter its marine terminals in Savannah and Brunswick next Tuesday if dockworkers go on strike.
The International Longshoremen’s Association (ILA), a union with approximately 2,500 members at Georgia’s ports, have vowed to walk out if its labor contract with shipping companies is not renewed before it expires Monday.
[paywall].

https://www.ajc.com/news/georgia-news/georgia-ports-to-shut-down-if-dockworkers-carry-out-strike-threat/D3LZGEBL5NAZRHDA6A5YD7B2KI/

North Carolina: Wilmington Port Plans For Potential Strike
20 minutes ago
The Port of Wilmington has released a contingency plan ahead of an expected strike.
-snip-
In anticipation of the possible work stoppage, North Carolina Ports has developed a contingency plan for the Port of Wilmington. According to a news release, North Carolina Ports will recognize any and all work stoppages.

The container gate at Wilmington’s port will operate under extended hours on Sept. 28 from 8 a.m. to noon and 1 p.m. to 5 p.m. and will operate under normal hours on Sept. 30. If there is a work stoppage on Oct. 1, the Port of Wilmington’s South (Container) Gate will be closed....
continued: https://www.wilmingtonbiz.com/mariti...l_strike/25982

Canada: Workers at Vancouver grain terminals go on strike, exports could take hit
September 24, 202411:38 AM EDTUpdated 40 min ago
OTTAWA, Sept 24 (Reuters) - Workers at the six main grain terminals located in the Canadian port of Vancouver went on strike on Tuesday, a move that could disrupt exports of canola and other crops, government and industry officials said.
"At my request, parties have agreed to resume negotiations alongside federal mediators," Labour Minister Steven MacKinnon said in a post on social media. "After a bumper crop summer, Canadian farmers and businesses need to get their harvest to market. Parties need to work hard to get a deal."
continued: https://www.reuters.com/world/americ...wa-2024-09-24/

Ships will have to wait out US East Coast port strike: ONE CEO
9/24/24
Container cargoes currently bound for the US East Coast could be stuck at sea for the duration of the dockworker strike expected to start next week due to a lack of alternative destinations to offload
“We're preparing now for the 30th of September when we expect that the terminals all along the East Coast will come to a stop,” Jeremy Nixon, CEO of Ocean Network Express (ONE), said on the sidelines of Marine Money Asia in Singapore.
-snip-
However, in the event of a strike from 1 October shipping lines will not be able to divert vessels bound for the US East Coast to West Coast ports as the ILA has made clear it would picket such a move.
“So, the vessels are now on their way to the East Coast will have to sit and wait until that industrial disruption is resolved,” Nixon said.
Continued: https://www.seatrade-maritime.com/co...strike-one-ceo

Wall Street Weighs In On East Coast Port Strike Potential
9/24/24
https://sourcingjournal.com/topics/l...ck-ups-528629/

[Commonground]

Maersk latest to announce US East Coast labour dispute surcharge
9/24/24
Maersk Line has joined a growing number of container lines in announcing a surcharge for US East Coast and Gulf ports as a dockworker strike looks set for 1 October.


In an update on the situation between the unions represented by the International Longshoremen Association (ILA) and employers represented by the United States Maritime Exchange (USMX) Maersk said, “Due to potential labour disruptions, Maersk is implementing a local Port Disruption Surcharge for all cargo moving to and from the US East Coast and Gulf Coast terminals, effective October 21, 2024.”

The surcharge is rated at $1,500 per teu, $3,000 per 40-foot containers including hi-cubes, and $3,780 for a 45-footer.

“This charge may be imposed as of October 21, 2024, depending on the impact of the disruption to the supply chain. This surcharge is necessary to cover the higher operational costs that will be incurred due to the service disruptions, ensuring the sustainability of our services and ongoing support for your supply chain requirements,” Maersk said.

The move by the Danish line follows similar announcements by MSC, Hapag-Lloyd, and CMA CGM.

https://www.seatrade-maritime.com/containers/maersk-latest-to-announce-us-east-coast-labour-dispute-surcharge

[Pathfinder]

Port NOLA
Port of New Orleans

CONTAINER TERMINAL UPDATES

We have received numerous inquiries regarding the potential work stoppage and we understand your concerns. Please rest assured that we are dedicated to supporting our partners during this period. Although our information is limited, here is what we know at this time from updates shared and from our container terminal operators. Please remain vigilant when monitoring vessel and/or ERD/Cutoff and last free days.

The USMX-ILA master contract (covering all US East Coast and Gulf Coast ports) expires at midnight on September 30^th, 2024.

A work stoppage is expected on October 1^st, 2024 if negotiations fail to reach an agreement.

New Orleans Terminal (serving MSC, Maersk and ZIM)

Link to customer portal for the full update and summarized below:

Vessel Operations: Cease Monday, September 30^th 12:00 PM

Rail Operations: Complete Monday. September 30^th 4:00 PM

Gate Operations: (General Imports/Export) Cease Monday, September 30^th 4:00 PM

Import Reefer: Out gate by Monday, September 30th at 4:00 PM

Export Reefers: Receiving ends at 4:00 PM Friday, September 27^th

on and only for vessels departing by Monday, September 30^th unless prior approval is obtained from New Orleans Terminal

Extension of hours: New Orleans Terminal will open the gate on Saturday ,September 28th from 8:00AM-12:00PM and 1:00PM-5:00PM (with the above reefer restrictions).

Demurrage Policy: Import and Export demurrage time will be stopped during the closure. So the days of the closure will not be counted against it.

Ports America (serving CMA CGM, Hapag Lloyd, Seaboard, Evergreen, COSCO, OOCL, Yang Ming)

Link to customer portal for the full update and summarized below:

Vessel Operations: TBD

Gate Operations: (General Imports/Export) Cease Monday, September 30^th 4:00PM

Import Reefer: Out gate by Monday, September 30th at 4:00PM

Export Reefers*: Customers to ensure that any export reefer received will be loaded on a vessel by Monday, September 30

*see Ports America portal for more information on Ports America limitation of liability as reefers that remain on terminal will not be monitored

Extension of hours: Currently under evaluation and TBD

Demurrage Policy: Ports America will pause demurrage and free time for all container activities (import, export, rail) in the event of a strike. Once the strike ends and terminal operations resumes, demurrage and free time will also resume and will be calculated based on each container’s status as of the date the strike began. For example, if a Container X was on free time day 2 and Container Y was on demurrage day 5 on the last day of operations before the strike, Container X will be on free time day 3 and Container Y will be on demurrage day 6 when the strike ends and terminal operations resume. This policy will be applicable to Ports America operations in New Orleans.

https://portnola.com/business/container-terminal-updates

[Commonground]

September 30, 2024
[bolding is mine]

NY: Governor Hochul Announces Statewide Preparations in Anticipation of Potential Strike Action at U.S. East and Gulf Coast Ports

State Moving Essential Goods To Protect Working Families

Hospitals Reminded To Stockpile PPE

Home Heating Oil, Gasoline and Diesel To Be Unaffected During Possible Strike

-snip-
The potential strike is not anticipated to affect petrochemical goods including home heating oil, gasoline and diesel, as well as municipal solid waste in the Port of New York and New Jersey. Cruise ships would be unaffected. Governor Hochul has directed New York State agencies and authorities to prepare in the event of a strike action, and these preparations include:

Port Authority of New York and New Jersey

PANYNJ has been actively preparing for the possible event of a strike at the Port, which is the largest on the eastern seaboard. The Port Authority has been working closely with the commercial trucking industry to ensure cargo containing essential goods, medical supplies, and food products that have already been offloaded are moved out of Port facilities and to their final destinations. Additionally, the Port has communicated with the ILA regarding appropriate protest areas to protect free speech.

Upstate Ports

We do not anticipate that Upstate ports including Albany, Coeymans, Oswego and Buffalo will be impacted by a strike.

Department of Health

In anticipation of a potential disruption to the medical products supply chain, New York State Department of Health has communicated with hospitals and nursing homes across New York State and reminded them of the requirement to maintain a 60-day stockpile of personal protective equipment and other critical goods. DOH and the Division of Homeland Security and Emergency Services will remain in regular communication with health care providers to monitor any supply chain impacts and redeploy resources, as necessary.

Division of Homeland Security and Emergency Services

The New York State Division of Homeland Security and Emergency Services’ Office of Emergency Management is closely monitoring the situation and is coordinating with state agencies on any potential resource deployments. Additionally, all state stockpiles are prepared to deploy any available resources including generators in the event they are needed.

https://www.governor.ny.gov/news/governor-hochul-announces-statewide-preparations-anticipation-potential-strike-action-us-east

[sharon sanders]

Massive port strike begins across America’s East Coast, threatening shortages and rising prices

8 minute read
Updated 7:15 AM EDT, Tue October 1, 2024


New YorkCNN —

Nearly 50,000 members of the International Longshoremen’s Association (ILA) are on strike Tuesday against the nation’s East and Gulf Coast ports, choking off the flow of many of America’s imports and exports in what could become the country’s most disruptive work stoppage in decades.

more... https://www.cnn.com/2024/10/01/busin...day/index.html

[Pathfinder]

Union dockworkers on strike at Port NOLA

By Maddie Kerth
Published: Oct. 1, 2024 at 5:39 AM CST|Updated: 18 minutes ago
...
Workers on strike call for higher pay and a full ban on automation in the workplace.
...
Across the country, at 36 ports from Maine to Texas, shipping containers full of goods like bananas to car parts, toilet paper, and Christmas presents will now sit at the dock.

The local workers in New Orleans join 45,000 others along the East and Gulf coasts who left the job at 12:01 a.m. Tuesday (Oct. 1) morning. That’s when the International Longshoremen’s Association’s contract with the U.S. Maritime Alliance expired.
...

https://www.fox8live.com/2024/10/01/union-dockworkers-strike-port-nola/

[Pathfinder]

Shoppers urged not to panic buy amid port workers strike

Experts say it's not necessary to rush to the supermarket and stock up on water and toilet paper as port workers strike.

Author: Eleanor Tabone / WWL Louisiana
Published: 6:21 PM CDT October 2, 2024
Updated: 6:21 PM CDT October 2, 2024

METAIRIE, La. — Shoppers may be asking themselves whether they need to start stocking up on supplies because of the strike happening at the ports. Well, experts say it's not necessary, you don't need to rush to the supermarket and stock up on water and toilet paper.

WWL Louisiana stopped by Sam's Club where shoppers were doing just that. Darrin Songy said, "Just stocking up, trying to at least, I came here and it's like Christmas time around here, it's craziness."
...
Remember toilet paper is made in America, we aren't importing toilet paper. A Sam's Club spokesperson said, "We are seeing elevated demand for certain items – most of which are manufactured in the U.S.
...

https://www.wwltv.com/article/news/local/metairie-shoppers-urged-not-to-panic-buy-amid-port-workers-strike/289-1612edf3-1802-4751-9271-ab475a2730f1

[sharon sanders]

I was at a WalMart yesterday in the Central Florida area at the pick-up parking section. No - I did not buy any toilet paper or paper towels. I bought "regular" stuff. I did see one major haul with 3 large toilet paper packages being delivered to a car. Everyone else seemed to buying the normal amounts. The parking area for pick-up had only about 4 cars. It could be that the average Floridian is already prepped for hurricanes.....