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Home News Port labor negotiations resume with strike just one week out

Port labor negotiations resume with strike just one week out

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Port labor negotiations resume with strike just one week out

New York — With just one week remaining before a potential major strike at East Coast ports, negotiation talks between the two parties have resumed as of yesterday.

Some 45,000 dockworkers unionized under the International Longshoreman’s Assn. went on strike for three days in early October before reaching a tentative agreement with port employers. That agreement saw a 61% increase in wages over the next six years, bringing the union’s highest paid workers to around $63 an hour, according to CBS.

While agreement was found on wages, parties were unable to come to terms on the issue of port automation. They must reach an agreement by Jan. 15 to avoid a strike. No progress on the issue has been made since October, with parties reportedly talking to each other very little since then.

It’s hard to know if the strike will actually occur. It’s poised to happen a few days before President Biden leaves office, and president-elect Donald Trump has aligned himself with the union.

According to Rachel Shames, vice president of procurement at freight broker and logistics services provider CV International, shippers across all industries are bracing for a strike. Ocean carriers also expect a strike and have announced surcharges if it were to happen.

“Ocean freight rates are up ahead of the potential labor disruption, and carriers have announced surcharges that go into effect as early as January 10; these surcharges cover the potential strike, congestion, and disruption that may occur as a result of a work stoppage,” she said. “All ocean freight cargos moving via U.S. East and Gulf Coast ports will be subject to these surcharges if they go into effect as planned, with surcharge amounts ranging between $1,000 and $3,000 per FEU.

“The market is also bracing for potential new import tariffs after the U.S. presidential inauguration this month,” she continued. “The Lunar New Year holiday begins this month as well, shutting down factories across China and other Asian countries, a period that is typically followed by blank sailings and the traditional slack season.

“Shippers and carriers are looking ahead to ocean contracting season, which also begins during the first quarter. Carriers will be aiming to keep freight rates elevated while shippers hope any disruptions are cleared quickly to allow rates to settle ahead of negotiations.”

Shames advises shippers to keep their logistics partners up to date on all shipping plans and forecasts.

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