Released October 02, 2024 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Dockworkers at ports along the U.S. East and Gulf coasts went on strike after midnight on Tuesday, halting cargo operations that supply U.S. supply chains and support the overall economy.
The International Longshoremen's Association (ILA) failed to reach a new labor agreement with the United States Maritime Alliance (USMX), due to an impasse in negotiations regarding wages and job security; the ILA says the contract covers about 45,000 workers, but the USMX says that amount is closer to 25,000.
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; the USMX is a non-profit organization that represents container carriers, direct employers and port associations serving the two coasts.
In a statement posted to social media, the ILA said, after rejecting the final proposal, it "shut down all ports from Maine to Texas ... as tens of thousands of ILA rank-and-file members began setting up picket lines at waterfront facilities up and down the Atlantic and Gulf Coasts." Those facilities are located at major cargo hubs such as New York/New Jersey, Charleston, South Carolina, Miami, Florida, Savannah, Georgia, and Houston, Texas.
"USMX brought on this strike when they decided to hold firm to foreign owned ocean carriers earning billion-dollar profits at United States ports, but not compensate the American ILA longshore workers who perform the labor that brings them their wealth," said ILA President Harold Daggett. "We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve."
USMX's final counteroffer would have increased wages by 50%, tripled employer contributions to employee retirement plans, strengthened healthcare options, and would not alter the current language around automation and semi-automation.
The federal government has been involved throughout the negotiation process--working with both parties to avoid a strike that would affect ports that handle roughly 50% of U.S. imports--although President Joe Biden has so far ruled out federal intervention. According to the non-profit research organization Conference Board, a one-week strike could cost the U.S. economy nearly $3.8 billion and increase the cost of consumer goods.
In a September 30 statement, National Association of Manufacturers (NAM) President and Chief Executive Officer Jay Timmons implored Biden to invoke the Taft-Hartley Act, which will force ports to resume operations while negotiations continue. "There will be dire economic consequences on the manufacturing supply chain if a strike occurs for even a brief period. NAM estimates show a strike at the East and Gulf Coast ports would jeopardize $2.1 billion in trade daily, and the total economic damage could reduce GDP by as much as $5 billion per day."
In a statement released Tuesday, the White House said President Joe Biden and Vice President Kamala Harris "were briefed on agency assessments that show impacts on consumers are expected to be limited at this time, including in the important areas of fuel, food and medicine."
Biden and Harris are "closely monitoring potential supply chain impacts and assessing ways to address potential impacts, if necessary."
In addition, the U.S. Department of Agriculture said, "analysis shows we should not expect significant changes to food prices or availability in the near term."
Industry observers and financial advisors say retailers frontloaded cargo to arrive prior to peak holiday season and stockpiled goods in preparation for the strike. Still, Margaret Kidd, supply chain and logistics technology program director at the University of Houston, told television station KHOU-TV she expects Biden "will have to intervene because of the danger to the overall U.S. economy," especially as it gets closer to the November 5 presidential election.
Ports forced to halt cargo operations include the Port of New York/New Jersey, the nation's third-largest port by volume of cargo handled. Just after the strike commenced, the port said in a social media post that all of its marine terminal operations, depots and centralized examination stations (CES) were closed. CESs are privately operated facilities used by U.S. Customs and Border Protection to inspect imported and exported cargo.
Meanwhile, New York Governor Gretchen Hochul (D) said the state "has been working around the clock to ensure that our grocery stores and medical facilities have the essential products they need. It's critical for USMX and the ILA to reach a fair agreement soon that respects workers and ensures a flow of commerce through our ports."
The strike also will halt cargo operations at both terminals at the Port of Savannah, the top U.S. port for the export of containerized agricultural goods. Operations at Port Houston's Barbours Cut and Bayport container terminals also will be disrupted, although the strike will not affect the transfer of oil and gas commodities at the Bayport Terminal.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can click here for profiles on marine cargo handling operations Industrial Info is tracking across the U.S.
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. Subscribers to the GMI Project Database can click here for a full list of projects.
For information on specific projects as well as the cause of the port strike, see September 25, 2024, article - Possible Work Stoppage Threatens U.S. East, Gulf Coast Port Operations.
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 International Longshoremen's Association (ILA) failed to reach a new labor agreement with the United States Maritime Alliance (USMX), due to an impasse in negotiations regarding wages and job security; the ILA says the contract covers about 45,000 workers, but the USMX says that amount is closer to 25,000.
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; the USMX is a non-profit organization that represents container carriers, direct employers and port associations serving the two coasts.
In a statement posted to social media, the ILA said, after rejecting the final proposal, it "shut down all ports from Maine to Texas ... as tens of thousands of ILA rank-and-file members began setting up picket lines at waterfront facilities up and down the Atlantic and Gulf Coasts." Those facilities are located at major cargo hubs such as New York/New Jersey, Charleston, South Carolina, Miami, Florida, Savannah, Georgia, and Houston, Texas.
"USMX brought on this strike when they decided to hold firm to foreign owned ocean carriers earning billion-dollar profits at United States ports, but not compensate the American ILA longshore workers who perform the labor that brings them their wealth," said ILA President Harold Daggett. "We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve."
USMX's final counteroffer would have increased wages by 50%, tripled employer contributions to employee retirement plans, strengthened healthcare options, and would not alter the current language around automation and semi-automation.
The federal government has been involved throughout the negotiation process--working with both parties to avoid a strike that would affect ports that handle roughly 50% of U.S. imports--although President Joe Biden has so far ruled out federal intervention. According to the non-profit research organization Conference Board, a one-week strike could cost the U.S. economy nearly $3.8 billion and increase the cost of consumer goods.
In a September 30 statement, National Association of Manufacturers (NAM) President and Chief Executive Officer Jay Timmons implored Biden to invoke the Taft-Hartley Act, which will force ports to resume operations while negotiations continue. "There will be dire economic consequences on the manufacturing supply chain if a strike occurs for even a brief period. NAM estimates show a strike at the East and Gulf Coast ports would jeopardize $2.1 billion in trade daily, and the total economic damage could reduce GDP by as much as $5 billion per day."
In a statement released Tuesday, the White House said President Joe Biden and Vice President Kamala Harris "were briefed on agency assessments that show impacts on consumers are expected to be limited at this time, including in the important areas of fuel, food and medicine."
Biden and Harris are "closely monitoring potential supply chain impacts and assessing ways to address potential impacts, if necessary."
In addition, the U.S. Department of Agriculture said, "analysis shows we should not expect significant changes to food prices or availability in the near term."
Industry observers and financial advisors say retailers frontloaded cargo to arrive prior to peak holiday season and stockpiled goods in preparation for the strike. Still, Margaret Kidd, supply chain and logistics technology program director at the University of Houston, told television station KHOU-TV she expects Biden "will have to intervene because of the danger to the overall U.S. economy," especially as it gets closer to the November 5 presidential election.
Ports forced to halt cargo operations include the Port of New York/New Jersey, the nation's third-largest port by volume of cargo handled. Just after the strike commenced, the port said in a social media post that all of its marine terminal operations, depots and centralized examination stations (CES) were closed. CESs are privately operated facilities used by U.S. Customs and Border Protection to inspect imported and exported cargo.
Meanwhile, New York Governor Gretchen Hochul (D) said the state "has been working around the clock to ensure that our grocery stores and medical facilities have the essential products they need. It's critical for USMX and the ILA to reach a fair agreement soon that respects workers and ensures a flow of commerce through our ports."
The strike also will halt cargo operations at both terminals at the Port of Savannah, the top U.S. port for the export of containerized agricultural goods. Operations at Port Houston's Barbours Cut and Bayport container terminals also will be disrupted, although the strike will not affect the transfer of oil and gas commodities at the Bayport Terminal.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can click here for profiles on marine cargo handling operations Industrial Info is tracking across the U.S.
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. Subscribers to the GMI Project Database can click here for a full list of projects.
For information on specific projects as well as the cause of the port strike, see September 25, 2024, article - Possible Work Stoppage Threatens U.S. East, Gulf Coast Port Operations.
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).
