Retailers and major trade associations are calling on East Coast and Gulf Coast port operators and unions to resume negotiations to prevent potential strike action when a temporary labor contract expires in January.
The contract, established in October between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) following three days of strikes, is set to lapse on January 15. This expiration has raised fears of renewed industrial action, which could disrupt the already fragile supply chain.
Historically, strikes at U.S. ports have forced shippers to shift cargo to airfreight to avoid extensive port congestion, adding significant costs and delays.
In a letter, the National Retail Federation (NRF), along with 267 trade associations, urged both parties to continue negotiations and resolve outstanding issues. The letter emphasized the harmful effects of ongoing uncertainty on supply chain stability.
“We understand significant challenges remain,” the letter stated. “However, resolving these issues requires sustained dialogue at the negotiating table. The repeated stops and starts in negotiations only deepen uncertainty and hinder the supply chain.”
The letter highlighted the lingering impact of the October strike, which caused widespread disruption for stakeholders reliant on East Coast and Gulf Coast ports. It noted that businesses are still recovering from the additional costs incurred from mitigation efforts and post-strike adjustments.
A prolonged strike in January could exacerbate these challenges. Port closures typically cause supply chains to take five days to recover for each day of disruption, meaning delays could quickly compound.
Concerns about further strikes have already spurred mitigation strategies. Charter brokers reported a surge in inquiries leading up to the October contract deadline as companies explored airfreight options to transport critical goods.
With the January 15 deadline approaching, the NRF and other trade groups are pressing for proactive engagement to avoid a repeat of October’s supply chain chaos and its costly aftermath.
Source: aircargonews.net