Fearing a second strike, large quantities of cargo were diverted to western American ports
Fearing a second strike as the 45,000 member International Longshoremen's Association (ILA) fails to reach a new contract with the employers' group by Jan. 15, many shippers have begun avoiding eastern and Gulf Coast ports.
On October 3, the ILA and the United States Maritime Union (USMX), an employers' group, reached a preliminary agreement on wages, ending a three-day strike that is expected to raise longshoremen's wages by 62% over six years and reopen 36 ports affected by the strike, accounting for half of U.S. seaborne trade. However, the key sticking point of the negotiations on "port automation" is still pending, and the two sides announced on October 25 that negotiations will continue in November.
Newell Brands, the maker of Graco high chairs and Crock-Pot cookware, will move to the U.S. West Coast what it expects to need in the second half of January, including hundreds of containers of critical materials, Chief Executive Chris Peterson said. Peterson predicted that a second strike by dockers would last up to two weeks.
Fearing a second strike as the 45,000 member International Longshoremen's Association (ILA) fails to reach a new contract with the employers' group by Jan. 15, many shippers have begun avoiding eastern and Gulf Coast ports.
On October 3, the ILA and the United States Maritime Union (USMX), an employers' group, reached a preliminary agreement on wages, ending a three-day strike that is expected to raise longshoremen's wages by 62% over six years and reopen 36 ports affected by the strike, accounting for half of U.S. seaborne trade. However, the key sticking point of the negotiations on "port automation" is still pending, and the two sides announced on October 25 that negotiations will continue in November.
Newell Brands, the maker of Graco high chairs and Crock-Pot cookware, will move to the U.S. West Coast what it expects to need in the second half of January, including hundreds of containers of critical materials, Chief Executive Chris Peterson said. Peterson predicted that a second strike by dockers would last up to two weeks.
Salvatore Stile, founder of New York-based freight forwarder Alba Wheels Up International, said the risk of a second strike was about 60 to 70 percent and that his clients were avoiding East Coast ports. "The main issue has always been automation, not money," Steele said of the union negotiations.
Unions see port automation as a job killer, but management believes it will make companies more profitable.
ILA union leader Harold Daggett wants employers to abandon automation plans that threaten jobs. But U.S. ports are at risk of falling behind other major global competitors.
The union said on October 25 that it planned to return to the bargaining table in November. But many shippers doubt that major ports such as New York and New Jersey, Houston and Savannah can reach an agreement not to strike again. So while major West Coast ports such as Los Angeles and Long Beach have seen record volumes this summer, many shippers are choosing to divert their cargo to West American ports.
Salvatore Stile, founder of New York-based freight forwarder Alba Wheels Up International, said the risk of a second strike was about 60 to 70 percent and that his clients were avoiding East Coast ports. "The main issue has always been automation, not money," Steele said of the union negotiations.
Unions see port automation as a job killer, but management believes it will make companies more profitable.
ILA union leader Harold Daggett wants employers to abandon automation plans that threaten jobs. But U.S. ports are at risk of falling behind other major global competitors.
The union said on October 25 that it planned to return to the bargaining table in November. But many shippers doubt that major ports such as New York and New Jersey, Houston and Savannah can reach an agreement not to strike again. So while major West Coast ports such as Los Angeles and Long Beach have seen record volumes this summer, many shippers are choosing to divert their cargo to West American ports.
