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Released September 25, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Ports along the U.S. East and Gulf coasts could halt cargo operations beginning October 1, if the International Longshoremen's Association (ILA) fails to reach a new labor agreement with the United States Maritime Alliance (USMX).
The ILA is the largest union of maritime workers in North America, representing more than 85,000 dockworkers, including 65,000 along the East and Gulf coasts, while the USMX is a non-profit organization that represents container carriers, direct employers and port associations serving the two coasts.
The existing contract between the two parties, which expires at midnight on Monday, September 30, covers 45,000 workers at ports spanning from Maine down to Texas--including those in major hubs such as New York/New Jersey, Savannah, Georgia, and Houston, Texas.
The breakdown in negotiations is due to unresolved issues such as wage increases and the use of automation. In June, the ILA suspended negotiation talks after the union initially discovered port operating company APM Terminals and Maersk Line, two subsidiaries of shipping giant Maersk (Copenhagen, Denmark), were utilizing autonomous truck processing systems; in early September, the ILA said it was willing to "strike for wages that are commensurate with the billion-dollar profits earned by the ocean carriers."
As of September 23, both slides still were slinging arrows. The USMX said it has been unable to schedule a new meeting with the ILA to resume negotiations, while the latter said the two sides have communicated multiple times in recent weeks and the stalemate remains because USMX continues to offer workers "an unacceptable wage increase package."
But in a client note, Jason Seidl, an analyst for investment banker TD Cowen, said the likelihood of an ILA strike is "on the rise as negotiations prove contentious, though action is unlikely to last long." Work stoppages or slowdowns would come shortly ahead of the November 5 U.S. presidential election.
The federal government aims to avoid a strike that could have a serious impact on U.S. supply chains. In that same September 23 statement, the USMX said it received outreach from federal agencies such as the U.S. Department of Labor and the Federal Mediation and Conciliation Service (FMCS)--an independent federal agency that aims to prevent or minimize the impact of labor-management disputes on the flow of commerce. "We would be open to working with the FMCS, as we have done successfully in the past, but that is only possible if both sides agree to mediation, the USMX said. "Our goal remains the same--we want to bargain and avoid a strike, but time is running out if the ILA is unwilling to return to the table."
The strike would affect ports that handle a combined 43% of U.S. imports, and those ports are providing updates on cargo operations leading up to a potential strike and the effects should a work stoppage move forward. Port Director for the Port Authority of New York and New Jersey Bethann Rooney released a statement, saying "preparations are underway for a potential strike," including offering additional gate hours through September 27, and potentially the 28th and 29th.
"Export cargo will not be accepted at any of the terminals unless it can be loaded onto a vessel prior to Monday, Sept. 30," Rooney said. "Coordinate closely with your ocean carrier on any export bookings as cargo will not be accepted at the terminals for vessels scheduled to arrive after September 30. The last trains for imports and exports will be on Monday, September 30."
Elsewhere along the East Coast, the Port of Virginia is offering extended gate hours from September 28 to 29.
Meanwhile, the Port of Savannah will have extended hours for trucks to move cargo up until October 1, and Port Houston, meanwhile, has said a potential strike could impact operations at its Barbours Cut and Bayport Container terminals.
Industrial Info is tracking $17.6 billion worth of active and planned projects at U.S. cargo ports, including those along the East and Gulf coasts. This includes two projects underway at the Port of Savannah, both of which are expected to wrap up by the second quarter of next year: a $410 million realignment of the dock at the port's Ocean Terminal will allow the terminal to services vessels with more than 16,000 shipping containers; a $200 million Phase 2 expansion of the Garden City Terminal includes adding about 90 acres of additional container storage to increase the Port of Savannah's annual handling capacity by 1 million twenty-foot equivalent units (TEUs). Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read more information on the Ocean and Garden City terminal projects.
Port Houston's major project activity is attributed to a major multi-phase expansion ("Project 11") of the Houston Ship Channel. The project's Expansion 3 involves widening the existing channel at the Barbours Cut Terminal from 300 feet to approximately 455 feet and modifying the channel entrance, among other work. This phase is expected to wrap up around the end of 2025. Click here to read the project report.
Click here for a full list of active and planned projects at U.S. cargo ports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The ILA is the largest union of maritime workers in North America, representing more than 85,000 dockworkers, including 65,000 along the East and Gulf coasts, while the USMX is a non-profit organization that represents container carriers, direct employers and port associations serving the two coasts.
The existing contract between the two parties, which expires at midnight on Monday, September 30, covers 45,000 workers at ports spanning from Maine down to Texas--including those in major hubs such as New York/New Jersey, Savannah, Georgia, and Houston, Texas.
The breakdown in negotiations is due to unresolved issues such as wage increases and the use of automation. In June, the ILA suspended negotiation talks after the union initially discovered port operating company APM Terminals and Maersk Line, two subsidiaries of shipping giant Maersk (Copenhagen, Denmark), were utilizing autonomous truck processing systems; in early September, the ILA said it was willing to "strike for wages that are commensurate with the billion-dollar profits earned by the ocean carriers."
As of September 23, both slides still were slinging arrows. The USMX said it has been unable to schedule a new meeting with the ILA to resume negotiations, while the latter said the two sides have communicated multiple times in recent weeks and the stalemate remains because USMX continues to offer workers "an unacceptable wage increase package."
But in a client note, Jason Seidl, an analyst for investment banker TD Cowen, said the likelihood of an ILA strike is "on the rise as negotiations prove contentious, though action is unlikely to last long." Work stoppages or slowdowns would come shortly ahead of the November 5 U.S. presidential election.
The federal government aims to avoid a strike that could have a serious impact on U.S. supply chains. In that same September 23 statement, the USMX said it received outreach from federal agencies such as the U.S. Department of Labor and the Federal Mediation and Conciliation Service (FMCS)--an independent federal agency that aims to prevent or minimize the impact of labor-management disputes on the flow of commerce. "We would be open to working with the FMCS, as we have done successfully in the past, but that is only possible if both sides agree to mediation, the USMX said. "Our goal remains the same--we want to bargain and avoid a strike, but time is running out if the ILA is unwilling to return to the table."
The strike would affect ports that handle a combined 43% of U.S. imports, and those ports are providing updates on cargo operations leading up to a potential strike and the effects should a work stoppage move forward. Port Director for the Port Authority of New York and New Jersey Bethann Rooney released a statement, saying "preparations are underway for a potential strike," including offering additional gate hours through September 27, and potentially the 28th and 29th.
"Export cargo will not be accepted at any of the terminals unless it can be loaded onto a vessel prior to Monday, Sept. 30," Rooney said. "Coordinate closely with your ocean carrier on any export bookings as cargo will not be accepted at the terminals for vessels scheduled to arrive after September 30. The last trains for imports and exports will be on Monday, September 30."
Elsewhere along the East Coast, the Port of Virginia is offering extended gate hours from September 28 to 29.
Meanwhile, the Port of Savannah will have extended hours for trucks to move cargo up until October 1, and Port Houston, meanwhile, has said a potential strike could impact operations at its Barbours Cut and Bayport Container terminals.
Industrial Info is tracking $17.6 billion worth of active and planned projects at U.S. cargo ports, including those along the East and Gulf coasts. This includes two projects underway at the Port of Savannah, both of which are expected to wrap up by the second quarter of next year: a $410 million realignment of the dock at the port's Ocean Terminal will allow the terminal to services vessels with more than 16,000 shipping containers; a $200 million Phase 2 expansion of the Garden City Terminal includes adding about 90 acres of additional container storage to increase the Port of Savannah's annual handling capacity by 1 million twenty-foot equivalent units (TEUs). Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read more information on the Ocean and Garden City terminal projects.
Port Houston's major project activity is attributed to a major multi-phase expansion ("Project 11") of the Houston Ship Channel. The project's Expansion 3 involves widening the existing channel at the Barbours Cut Terminal from 300 feet to approximately 455 feet and modifying the channel entrance, among other work. This phase is expected to wrap up around the end of 2025. Click here to read the project report.
Click here for a full list of active and planned projects at U.S. cargo ports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
