Shipping lines are beginning to declare force majeure, as the US east and Gulf coast port strike enters its second day, reports The Loadstar.
White House defends ILA
Any hope from employer association USMX that the government might intervene to halt the economically damaging strike was dashed yesterday, when the White House landed firmly on the side of the union.
The administration also warned carriers against ‘price-gouging’ as the strike continues.
A statement from President Biden urged both sides to restart collective bargaining, saying “the best way for workers to get the pay and benefits they deserve”.
Noting the devastation caused by Hurricane Helene, the president pointed out that dockworkers played an essential role.
Now is not the time for ocean carriers to refuse to negotiate a fair wage for these essential workers while raking in record profits. My administration will be monitoring for any price gouging activity that benefits foreign ocean carriers, including those on the USMX board.
USMX, meanwhile, reiterated the offer it made just before the strike began, of a near-50% wage increase, and urged the union to return to the negotiating table – “the only way to reach a resolution”.
The ILA responded that the offer was inadequate.
Box lines including ONE, CMA CGM and APL have since called force majeure.
CMA CGM pointed customers to the small print in its contract, which in certain circumstances allows it to offer alternative places of delivery; suspend and store deliveries; or “abandon the carriage of the goods and place the goods at the merchant’s disposal at any place or port which the carrier may deem safe and convenient, whereupon the responsibility of the carrier in respect of such goods shall cease”.
All of which will be charged at full price, and with any additional costs paid for by the shipper.
Maersk said there were no restrictions on new import bookings to ILA-controlled ports – except for refrigerated cargo. It said it could provide contingency inland routings from west coast ports to east coast markets, and asked customers to hold on to their empty containers, as it has no alternative empty depots.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe
Source: The Loadstar
