A labor strike that would halt cargo-handling operations at ports from Houston to Boston just weeks before the US presidential election is looking increasingly likely.þþDueling statements from the United States Maritime Alliance, known as USMX, and the International Longshoremen’s Association on Friday indicate the two sides are still pretty far apart.þþUSMX, which represents terminal operators and ocean carriers, said it remains ready to continue bargaining, and that the latest offer to dockworkers includes “industry-leading wage increases” and retains the current contract’s language on automation.þþAlso on Friday, the ILA’s Executive Vice President Dennis Daggett, accused shipping CEOs of “taking home bonuses in the billions” and ocean carriers of raking in profits by “raising rates on their customers due to global conflicts or natural disruptions.”þþAutomation DisputeþþThe ILA called off high-level wage talks in June over truck gate technology in use at a Port of Mobile terminal that the union said was in violation of the automation agreement. The union is also demanding significant wage increases to make up for inflation and a share of the extraordinary profits won by ocean liners during the pandemic.þþAs the summer marches on, ILA President Harold Daggett has repeatedly warned of a strike if no deal is reached by the deadline and last weekend set a meeting in early September for union delegates to discuss wage demands and strike strategies.þþSome importers have responded by routing cargo through other ports andstocking up now in case of a disruption ahead of the year-end holidays.þþIn response to the USMX statement on Friday, the Daggetts said in a Facebook post that when it comes to the contract talks, “we are very far apart, particularly on the economic issues. In fact, we are at an impasse.”þþCharles van der Steene, Maersk’s North America president, said in an interview Thursday that both sides “are doing their utmost to come to the best solution,” and that Maersk has been working with customers on contingency plans should talks turn sour.þþRead More: Maersk Sees Trade Disruptions Lasting Throughout 2024þþ“Just a week of disruption could have a knock-on effect for anywhere between four to six weeks down the line, in terms of overall disruption to the industry within North America,” said van der Steene. Maersk, the world’s No. 2 container carrier and a major terminal operator, is a member of the USMX.þþUS industry groups that rely on imports and exports are sounding the alarm. The Retail Industry Leaders Association, whose members include Home Depot, Target, and Dollar General, warned last week that a strike could impact the peak holiday shipping season and called on the White House to get involved if necessary.þþ“Absent positive developments in the coming weeks, the Biden administration needs to engage both sides and help reach a resolution that averts any labor stoppage at these crucial commerce gateways,” RILA said.
Source: bloomberg.com
