U.S Port Negotiations Stall Over Automation Dispute

Labor talks between U.S. port employers, represented by the United States Maritime Alliance (USMX), and the International Longshoremen’s Association (ILA), representing dockworkers along the U.S. East and Gulf Coast ports, have come to a halt over automation disputes.

Set against a backdrop of longer transit times and higher costs, Xeneta’s chief analyst, Peter Sand, said the possibility of strike action may force importers to pull forward efforts to safeguard their ocean-based supply chains, which could lead to a continuous cycle of disruptions for the container freight shipping market.

While past strikes at U.S. ports have seen shippers use airfreight to avoid shipping disruptions, strike action at East and Gulf Coast ports does offer shippers the option to utilize services via the U.S. West Coast and then use intermodal transport to reach their planned destinations, which will help relieve some of the pressure on airfreight.

The ILA contract expires on September 30. The union’s leadership has previously stated that ILA members would go on strike if an agreement is not reached.

Source: ILA, Air Cargo News