- U.S. Port Strike Looms as Maersk Warns of Potential Disruptions.
- Maersk Warns of Strike Impact if Wage Agreement Not Reached by January 15.
- Possible U.S. Port Strike Could Disrupt Billions in Trade, Maersk Says.
Shipping giant AP Moller-Maersk has told customers to take laden containers from U.S. East and Gulf Coast ports and return the empty ones before January 15 to avoid potential disruptions. The advisory comes ahead of the expiration of a conditional wage agreement, which could lead to a coast-wide strike if no resolution is reached, reports Reuters.
Wage Agreement Set to Expire on January 15
The conditional agreement on wages between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) is set to expire on January 15. According to Maersk’s advisory, “If no agreement is reached by that date, a coast-wide strike on January 16 is possible.” The advisory further stated, “The negotiations have had no new developments since our last communication.”
Potential Impact of a Strike
A strike would bring to a standstill some billions of dollars in trade and impact global supply chains. The labour dispute will also push up inflationary pressures. The ILA, with more than 45,000 members, and USMX had agreed to a 62% wage increase over six years in October, ending a three-day strike. But none of the issues over automation at U.S. ports remain an issue.
Automation Dispute Remains Unresolved
There have been no concrete developments in the discussions on the future of automation at U.S. ports. Neither the ILA nor the USMX has indicated any intention to return to the negotiating table before mid-January, Bloomberg News reported. This is an issue that may determine whether a strike is eventually averted.
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Source: Reuters
