With just over a week to go until a promised strike by East and Gulf Coast dockworkers, a U.S. trade group representing $92 billion dollars in annual imports through the affected gateways became the latest business interest to plead with President Joe Biden to step in to prevent a work stoppage.
At the same time, port employers said they remain open to negotiations but have been unable to schedule bargaining with the longshore union.
Elsewhere, shipping lines are tacking on peak season surcharges in anticipation of extended delays if port activity comes to a standstill.
On Monday the American Apparel & Footwear Association (AAFA) in a letter to Biden expressed “deep concern” about disruptions a strike could have on East and Gulf Coast ports, and implored the administration to get the United States Maritime Alliance and the International Longshoremen’s Association back to contract negotiations.
Bargaining on a new master contract covering 45,000 union workers at three dozen ports from Texas to Maine broke down months ago over unspecified proposals on wages, benefits and job protection. Biden earlier said he won’t block a port strike by the ILA.
An array of importers and manufacturers as well as House Republicans previously urged Biden to act on a possible work stoppage.
In the letter, AAFA President and Chief Executive Steve Lamar claimed that the three dozen East and Gulf Coast ports affected by a work stoppage “will lose business long term as importers switch to the West Coast ports. The West Coast ports will face severe disruptions as limited capacity to absorb these products will create significant strains and delays at ports on rail, and on trucks.” He added that “American families will face a surge in prices and product shortages not seen since the pandemic.
“Now that we are one week away from a major disruption, the situation is dire, and we need your help now,” Lamar wrote, addressing Biden.
The ILA ports account for 53% of all U.S. apparel, footwear and accessories imports, or more than $92 billion, according to the trade group’s data. “This disruption would occur during peak holiday shipping season and raise the price of goods even higher, sending inflation skyrocketing. This potential shipping crisis will create a scarcity of goods while goods that are still available will be costly for American families,” the group said in a release accompanying the letter.
Also Monday, the United States Maritime Exchange, representing port employers, said it has been unsuccessful in trying to restart contract talks.
“Despite additional attempts by USMX to engage with the ILA and resume bargaining, we have been unable to schedule a meeting to continue negotiations on a new Master Contract,” the employers said in a release. USMX added it has been contacted by the Department of Labor, the Federal Mediation & Conciliation Service, and other federal agencies, but both sides have to agree to work with federal mediation.
The union did not immediately respond to requests for comment.
Marseilles, France-based CMA CGM, the world’s third-largest container shipping line, notified customers it will implement a surcharge across all freight of $1,000 per unit of cargo originating from the Indian subcontinent, Middle East Gulf, Red Sea and Egypt destined for the U.S. East and Gulf coasts. The surcharge is effective Nov. 1 until further notice.
More coverage by Stuart Chirls:
Maersk: Q4 container demand to remain strong