With just days to go until a planned strike by the International Longshoremen’s Association could shut down East and Gulf Coast marine container traffic, ports and terminals are making plans to help shippers, truckers and other logistics providers through the aborning supply chain crisis.
The union has set a strike date of Oct. 1, when the current contract covering workers at ports from the Eastern Seaboard to the Gulf Coast expires.
Negotiations on a new six-year master contract have stalled over wages, benefits and port automation. The ILA has rejected terms proposed by port employers represented by the United States Marine Alliance (USMX). It is believed the ILA is seeking a better deal than the 32% pay hike the International Longshore & Warehouse Union reportedly negotiated with West Coast port employers in 2023.
Despite pressure from dozens of importers, manufacturers and House Republicans, President Joe Biden said he won’t block a strike by the union representing 25,000 employees working in dockside container and ro-ro services.
The USMX in an email said there had been no change in the stalemate. The ILA did not immediately respond to a request for comment.
Ports are advising shippers to move quickly over the coming days to clear out cargo, and some are offering extended gate hours and other accommodations. Most warned that refrigerated cargo won’t be monitored after Sept. 30.
The Georgia Ports Authority will open truck gates this weekend so shippers can retrieve cargo before Oct. 1 at its Garden City Terminal at the Port of Savannah. The port will accept exports, including refrigerated containers, until Monday.
There will be an orderly shutdown of terminals as of Monday at the Port of Virginia, including Norfolk International Terminals, Virginia International Gateway, Newport News Marine Terminal, Pinners Point Container Yard, Portsmouth Chassis Yard and the Reefer Service Area. The last inbound train is expected at 8 a.m., and all inbound truck gates will close by noon. The last train is scheduled to depart and all vessels are required to sail by 1 p.m. Motor carriers must clear the port by 3 p.m., and marine operations will be halted at 6 p.m.
The Port of Jacksonville, Florida, said in an advisory that it is monitoring the labor situation and expects a strike to affect approximately one-third of its business, mostly in new vehicles and in container volumes at the SSA Jacksonville terminal.
The Maryland Port Administration in a statement on its website said it has received assurances from the ILA that cruise operations and military cargo at the Port of Baltimore won’t be affected by a strike. The port also handles substantial export coal traffic but did not immediately comment on what effect the strike may have there.
Normal business operations are expected in the days leading up to Monday, according to a notice from the Port of Houston. A strike would not only affect container operations, but also the ILA-supported public general cargo and multipurpose facilities.
Rail carrier CSX [NASDAQ: CSX], which works a number of the affected ports, in an email statement said it continues to monitor the situation. The carrier has developed a lane-level curtailment plan detailing the last day it will accept international shipments for East Coast ports.
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