The strike seems eminent as contract talks have stalled between workers and the port authorities. “Many retailers have taken precautions, including earlier shipping and shifting cargo to West Coast ports,” says Jonathan Gold, NRF Vice President for Supply Chain and Customs Policy.
A contract that was entered between the International Longshoremen’s Association and the United States Maritime Alliance, covering East Coast and Gulf Coast ports, is set to expire on September 30. With negotiations not able to reach a mutual agreement, the ILA has announced the possibility of a strike if a new contract is not reached by the deadline.
The NRF has continued to urge both parties to return to the negotiating table. Rising freight rates have also prompted importers to ship earlier.
“We hope to see both sides resolve this issue before the current contract expires because retailers and the economy cannot afford a prolonged strike,” said Gold. “This comes on top of ongoing disruption issues, including attacks on commercial vessels in the Red Sea. Vessel diversions have led to increased shipping times and costs, as well as equipment shortages and congestion in Asian ports.”
U.S. ports covered in the NRF’s Global Port Tracker report, produced by Hackett Associates, handled 2.16 million TEU in June, a 3.6% increase from May and a 17.7% increase year over year, bringing the first half of 2024 to 12.1 million TEU, up 15% from the same period in 2023.
