According to The Loadstar, a port strike on the US East and Gulf coasts is expected to begin on 1 October, as talks between the International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX) over wages and terminal automation have reached an impasse. Both sides have yet to agree on a new master contract.
Wage and Automation Disputes
The primary sticking points in the negotiations are wage increases and the ILA’s strong opposition to terminal automation. While the USMX has urged the ILA to continue discussions to avoid a strike, the ILA insists that local negotiations must be settled before addressing the master contract. Automation, which the ILA argues threatens jobs, remains a significant issue, with the union committed to opposing robotic technologies that could replace human workers.
Potential Impact of the Strike
If the strike occurs, it could significantly disrupt global shipping, as the ILA controls 14 major ports that handle around 550,000 TEU each week. Analysts predict that for every week the strike continues, it could immobilize 1.7% of the global container fleet. This could have broad economic implications, making US imports more expensive and reducing the competitiveness of US exports.
Increased Traffic Through Canadian Ports
In the event of a strike, shipping companies may redirect cargo to Canadian ports like Halifax and Montreal. However, logistical challenges such as rail transport bottlenecks, particularly in Port Huron, Michigan, could hamper the movement of goods, further complicating supply chains.
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Source: THE LOADSTAR
