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No resolution in sight as US east coast port strike action draws closer

Potential strike action at US East Coast and Gulf Coast container ports is drawing closer as there is no resolution in sight to the ongoing dispute between terminal operators and their employees.

The current master contract agreement is due to expire on October 1 and workers say they will down tools if an agreement over wages and conditions cannot be reached.

The latest development in the dispute has seen the US Maritime Alliance (USMX) file an Unfair Labor Practice (ULP) charge with the National Labor Relations Board (NLRB) that if successful would require the International Longshoremen’s Association to return to the negotiating table.

However, the ILA has dismissed the accusation that it has been refusing to negotiate, labelling the move a publicity stunt “designed to fool the American public that they care for the longshore workers”.

“USMX filing these charges four days before the expiration of the current Master Contract clearly illustrates what poor negotiating partners they have been,” the ILA said yesterday. “If it wasn’t for the ILA engaging in serious and productive negotiations, most of the local agreements would not have been settled over the past year.”

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.

Freight forwarder Dimerco today said that any strike action would be a boost to air cargo.

“The potential ILA strike on October 1 is expected to further boost airfreight demand, particularly for shipments to the east coast, as ocean freight switches to air,” said Dimerco Express Group vice president of sales and marketing Kathy Liu.

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.”

Cooler air cargo market in September just a blip

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