(Reuters) -Some 45,000 union workers walked off their jobs at seaports on the U.S. East and Gulf Coasts on Oct. 1, cutting off vital trade arteries just weeks before the country’s presidential election.
The International Longshoremen’s Association (ILA) union, which represents longshoremen at 36 ports on the US East Coast and the Gulf of Mexico, continues to be at an impasse with the employers’ group United States Maritime Alliance (USMX) over wage issues.
The shutdown is the first coast-wide ILA strike since 1977 and will halt the flow of about half of the country’s maritime shipping. A two-week strike could mean ports could not return to normal operations until 2025, according to Sea-Intelligence, a Copenhagen-based shipping consultancy.
Here’s what global companies and stakeholders have said about a possible strike:
Costco (NASDAQ:) The contingency plans of the American retailer Costco
Wholesale involves pre-shipping some products for entry
holiday items early and ready to use
several ports, Costco’s CEO Ron Vachris
said last week.
Maersk, the Danish shipping and logistics giant, said this
on September 30, a longer dispute could worsen
disruptions that affect imports and exports
activities, availability of containers, and
overall operational efficiency.
The company has said it will introduce a port
disruption surcharge on all freight being transported to
and from the US East Coast and Gulf Coast
terminals starting October 21 ranging from $1,500 to
$3,780 per container.
CH Robinson “We have been working on contingency plans
Spent months working with customers and helping them
import freight early and diversify freight to
other ports,” Mia Ginter, director of North
US shipping, told Reuters. A
significant volume shift to the west coast
could challenge rail services, requiring more
use of truck and transport services, Ginter
added.
Maher Maher and Maersk’s APM, which are members of
Terminals and the Employer Bargaining Group (USMX) said this
APM Terminals retained their terminals in the port
of New York and New Jersey open for two
extra hours to clear freight before the
possible strike.
Garden City The Garden City Terminal in the port of
Terminal and Savannah and the Norfolk International
Norfolk Terminal at the Port of Virginia has that too
International has extended gate hours for the weekend
Terminal before September 30 to clear cargo.
Hapag-Lloyd The shipping giant has said it is close
monitoring the strike situation and will continue
customers are involved as developments unfold.
Andreas Stihl The German chainsaw manufacturer Andreas
AG & Co Stihl AG & Co told Reuters that this is also the case
developing contingency plans to maintain exports
flows from the factory near the port of
Virginia, but did not elaborate further. Stihl’s USA
factory ships products to more than 80 countries.
Designer Ronnie Robinson, chief supply chain officer
Brands at DSW parent company Designer Brands (NYSE:), said
the company has shifted half of the usual
imports to the west via the east coast
Coast. Robinson added that his company can’t do that
risk late deliveries to customers like Macy’s (NYSE:),
Nordstrom (NYSE:) and Dillard’s (NYSE:) department stores,
even if it means paying more for shipping.
National NAM CEO Jay Timmons said a strike would result
Association of Manufacturing Supply Chains Around the World
US manufacturers in disarray. ‘Billions of dollars
goods – from food to vehicles to electronics
– depend on access to the East and the Gulf Coast
ports,” Timmons said Monday.
Inter IKEA: “We are closely monitoring the situation
which gives hope for an agreement between the parties
IKEA furniture as soon as possible. It’s too early to comment
take into account all possible restrictions that the strike may entail
have in our supply chain.”
McCormick (NYSE:) & The company said it was coordinating mitigation
Business plans with domestic suppliers with inbound
supply comes from outside the US
National The retailer group urges US President Joe
Retail Biden to use all available authority and tools
Federation including Taft-Hartley will take immediate action
restore operations in all affected containers
ports, return the parties to the
negotiating table and make sure there are none
further disruptions
BNSF Railroad The railroad said it is keeping a close eye
the situation with the East Coast and the Gulf Coast
ports and was fully prepared for any services
in the demand for rail services, adding that this is also the case
local teams continue to work with it
terminal operators about the specific needs
meet the requirements of their facilities.
Walmart (NYSE:) The retailer said it has prepared for this
unforeseen disruptions in the supply chain
and maintains additional sources of supply
ensure that key products are available
customers when and how they want.
US The ministry said it does not expect this
Department shortages anytime in the near future for most
Agricultural items and adds that it is being monitored
downstream impacts in the west, and will continue
to monitor and work with industry to respond
on possible consequences.
Merit Medical CEO of medical device manufacturer Fred
Systems Lampropoulos said the company anticipated this
strike and exchanged part of his shipment
for air transport before July.
CSX (NASDAQ:) The railroad said it has been flexible,
add service in collaboration with western
partners to provide customers
alternative options for west coast ports.
Ahold Delhaize The owner of Food Lion and Hannaford
The supermarket chains say they are preparing for this
the situation and remains in close dialogue
with suppliers, including local suppliers
ensuring that stores are stocked. The minimum is expected
impact on today’s supply chain.
