US box port workers ‘ready to strike’ as contract deadline looms
18 / 09 / 2024
Source: Strikernia/shutterstock
US East and Gulf Coast container port workers say they are ready to launch industrial action on October 1 unless a new contract can be agreed with terminal bosses before then.
The International Longshoremen’s Association (ILA) yesterday issued a statement to say that members are “united as never before in their determination to win a new contract with their employers”.
Strike action at the ports is likely to result in a rise in air cargo demand in what is already a capacity-constrained environment in many key markets from Asia. The current six-year agreement runs until the end of September.
“In two weeks, they are ready to strike for wages that are commensurate with the billion-dollar profits earned by the ocean carriers,” the ILA said.
“A strike at all ILA ports on the Atlantic and Gulf Coast at 12:01am on October 1 seems more likely as time is running out to get a new Master Contract Agreement settled with US Maritime Alliance (USMX).
“ILA longshore workers understand that the time is now to take a stand and fight a higher level of wages, that compensates them for their contributions to enriching their employers and the industry and addresses high inflation that eats away at their current salary levels.”
As well as wages, the union is also reportedly concerned about operators’ move towards automation at terminals.
The development comes as the Biden administration reportedly said it would not invoke a federal law to prevent strike action.
US presidents can invoke the Taft-Hartley Act to force workers back to work for an 80-day cooling-off period for resumed discussions if the dispute threatens national security or safety.
Meanwhile, a group of 177 trade associations yesterday wrote to president Biden urging the administration to work with the ILA and USMX to reach a new master contract.
“A strike at this point in time would have a devastating impact on the economy, especially as inflation is on the downward trend… At this critical juncture, it is imperative that the parties return to the table without engaging in disruptive activities that could harm the economy and the millions of businesses, workers and consumers who rely on the seamless flow of goods, both imports and exports, through our East Coast and Gulf Coast ports,” the letter said.
Market observers have been warning that strike action at US ports could add extra pressure to the air cargo market as shippers switch to air to avoid supply chain disruption.
Speaking on a webinar at the end of August, Tiaca director general Glynn Hughes said if the east coast ports shut down, cargo would need to be re-routed through the west coast, which would add time and cost, or shippers would need to switch to air cargo.
Niall van de Wouw, chief airfreight officer at Xeneta, added: “We see that flights are already full on many lanes, we see elevated rates. If we look at the strikes that might be heading our way on the port side, there is no resolution in sight on what is happening in the Middle East, the reduction of belly capacity towards the end of the fourth quarter, and you add it all together, you have a toxic mix of overheating towards the end Q4.”
