Eleventh-hour attempts to undo a wage deadlock and avoid a strike by dockworkers at ports on the Atlantic seaboard and Gulf of Mexico have failed, resulting in 45 000 stevedore labourers downing tools from midnight, October 1.
Danish freight forwarder Scan Global Logistics confirmed this in a circular sent out this morning, mentioning that the feared strike – the largest on this scale since 1977 – started after the International Longshoremen’s Association (ILA) failed to reach an agreement for a new contract with employer union, the United States Maritime Alliance (USMX).
The circular states that “picket lines have been reported by gate cameras at the port of Philadelphia”.
“The ILA is said to have rejected a last-minute offer from the USMX on Monday that included a 50% wage increase over six years and a pledge to maintain limits on automation from the current contract.
“Additionally, the ILA is currently refusing the USMX request to extend the current contract while an agreement is being negotiated.”
According to Daniel Cacciotti, global head of Ocean Freight at Scan Global, port operations for cargo vessels are expected to cease at Boston, New York/New Jersey, Philadelphia, Wilmington, Baltimore, Norfolk, Charleston, Savannah, Jacksonville, Tampa, Miami, Port Everglades, New Orleans, Mobile and Houston.
Altogether some two dozen ports along the affected east and southern coastline of the US could be affected.
The ILA has apparently undertaken to maintain servicing military cargo during a strike period and agreed to continue to work passenger cruise ships, Scan Global said.
“It is estimated a one-week strike could cost the US economy nearly $4 billion and cause supply chain disruptions and delays through mid-November. A two-week strike could cause delays and supply chain dysfunctions through January.”
