The heading translates to: "Shippers avoid East and Gulf Coast ports – fear of another strike.
- Automation issues remain a central point of contention.
- Shippers change routes due to the threat of strikes at US ports.
Eulerpool News·
The uncertainty about potential work stoppages at the major East and Gulf Coast ports of the USA is prompting many shippers to adjust their routes. The backdrop is the warning from a total of 45,000 dock workers who could strike again if a new collective agreement is not finalized by January 15. The International Longshoremen's Association (ILA) had ended a three-day strike in October with the United States Maritime Alliance (USMX) and agreed on preliminary wage increases, but left the automation issue unresolved.
Chris Peterson, CEO of Newell Brands, known for products such as Graco high chairs and Crock-Pot cookers, is already relocating several hundred containers to the West Coast due to the impending strike. He expects a strike duration of at most two weeks in a worst-case scenario. The previously agreed wage increase of 62% over six years is insufficient for a lasting agreement given unresolved issues regarding automation, which is seen as a job threat.
Salvatore Stile of Alba Wheels Up International estimates the strike risk at 60-70% and describes automation as the main point of contention. Port of Los Angeles Executive Director Gene Seroka also sees no imminent easing of the situation and anticipates a continued strong October.
Meanwhile, the congestion situation at stricken ports is only slowly improving. The number of waiting container ships has decreased from 54 to the current 31. Retailers like Walmart and Target have been able to secure Christmas deliveries through early import measures, but emphasize the far-reaching consequences of the strike. Modern Financial Markets Data
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