US East Coast Dockworker Strike Deepens Supply Chain Disruption

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  • The US East Coast dockworker strike has disrupted supply chains, affecting 62 deepsea services and over $40 billion worth of goods.
  • With no quick resolution in sight, the strike has led to significant capacity loss, with over 775,000 TEU in the first week.
  • Political backing for striking dockworkers is strong, with support from both President Biden and Acting Labor Secretary Julie Su.

As the US East Coast dockworker strike enters its third day, the potential for disruption to supply chains is escalating rapidly, with no immediate resolution in sight, reports Seatrade Maritie.

Negotiations at a Standstill

Members of the International Longshoremen Association (ILA) continue to picket, halting operations at key ports. Employers, represented by the United States Maritime Alliance (USMX), have refused to agree to preconditions for returning to the bargaining table but have stated their commitment to negotiating in good faith.

“We cannot agree to preconditions to return to bargaining – but we remain committed to bargaining in good faith to address the ILA’s demands and USMX’s concerns,” the employers emphasized.

Union Leaders Face Threats

The ILA remains firm in its position, with reports of death threats targeting its President, Harold Daggett, and other union leaders. Despite this, the union shows no sign of backing down.

The striking dockworkers have gained notable political backing, including from US President Joe Biden and Acting US Labor Secretary Julie Su, strengthening their stance in the ongoing industrial action.

Cargo Ships Left Waiting at Sea

With no option but to wait, container ships laden with cargo continue to sail toward East Coast ports.

Analysts from Sea Intelligence predict significant delays as vessels may be forced to drop anchor and await the resolution of the strike.

Impact on Deepsea Services

According to Sea Intelligence, 62 deepsea services calling at East Coast ports will be affected. Without a swift resolution, these ships will be delayed at their first port of call for discharge, with additional vessels already en route potentially facing delays at multiple ports.

“Unless there is a very rapid and unexpected resolution to the industrial dispute, ships will have to wait at anchorage at the first port of call on their discharge schedule,” Sea Intelligence warned.

Capacity Loss Estimates

In the first week alone, the capacity loss is estimated at 775,000 TEU. Subsequent weeks are expected to see lower but still substantial losses of around 443,000 TEU.

“Should the strike last 4 weeks, causing almost 7% of the Global Fleet to be tied up along the US East Coast, the overall impact on the supply and demand equation will be very significant,” said Alan Murphy, CEO of Sea-Intelligence.

Vessels Diverting to Other Ports

As of the second day of the strike, 368 vessels were bound for ILA ports, up from 348 the previous day, according to Vizion’s container tracking API. Four vessels have already rerouted to alternative ports in the Bahamas, Halifax, and Panama.

The value of goods at sea has surged, increasing to $40 billion on the second day of the strike, up from $38 billion on the first day, illustrating the growing economic impact.

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Source: Seatrade Maritime