THE PORT strike currently in action across United States east coast and Gulf of Mexico ports has entered its third day, as the effects of the walkout begin to be felt by shipping lines and freight companies.
With up to 36 ports across the US affected by the strike, initiated by the International Longshoremen’s Association (ILA), anchorages have started to fill as more vessels arrive and await the resumption of operations.
The ports of Savannah (Georgia), New York & New Jersey, and Charleston (South Carolina) have begun to accumulate significant vessel queues, with some early signs indicating shipping lines may opt to bypass the US altogether, with no end in sight yet for the work stoppage.
Reports out of North America indicate some vessels have already indicated to delay or omit their scheduled US port calls, including the ONE Line-operated Kingston (4250 teu), which has postpound its Atlantic journey following the completion of operations in Spain’s Algericas.
Meanwhile, Hapag-Lloyd has announced a number of east coast omissions to be replaced by Mexican and Canadian alternatives, including 2500 teu Puerto Limon Express, which will omit its call at Norfolk in favour of Canada’s St Johns, and 6600 teu Tokyo Bay, which will omit Houston and New Orleans for Mexico’s Altamira.
Shipping lines including ONE Line, CMA CGM, and APL have all declared force majeure in the wake of the strike, attempting to invoke the clause which covers unforeseen circumstances that prevent the carrying out of contracted obligations.
The United States Maritime Alliance (USMX), the coalition of shipping carriers and employers, has reiterated its current offer to the ILA of a nearly 50% wage increase, stating it has demonstrated a commitment to end the “completely avoidable” strike.
“Our current offer of a nearly 50% wage increase exceeds every other recent union settlement, while addressing inflation, and recognizing the ILA’s hard work to keep the global economy running,” the USMX statement read.
“We look forward to hearing from the Union about how we can return to the table and actually bargain, which is the only way to reach a resolution.”
Any suggestion that US President Joe Biden may intervene to resolve the strike however has been dispelled, with President Biden’s white house backing the union’s decision to walk off the job.
A statement from the President said, “I have urged USMX, which represents a group of foreign-owned carriers, to come to the table and present a fair offer to the workers of the International Longshoremen’s Association that ensures they are paid appropriately in line with their invaluable contributions”.
“Ocean carriers have made record profits since the pandemic and, in some cases, in excess of 800% compared with their profits prior to the pandemic.”
Initiated by the ILA, the largest union of maritime workers in North America, the strike has seen tens of thousands of port workers walk off the job, following a breakdown in negotiations over a new master contract.
Landside, trucking capacity and rates are expected to feel the pressure from the port closures, as shippers attempt to route cargo inland.
Head of the US Airforwarders’ Association, Brandon Fried, said that even if containers are available, there is a risk that forwarders won’t be able to find enough trucks to move them, meaning they’ll sit and rack up storage costs.
Mr Fried said that both ocean and drayage rates are expected to increase as capacity dries up.
