East Coast, Gulf Coast port strike fears grow as key longshoremen labor union meetings begin

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East Coast, Gulf Coast port strike fears grow as key longshoremen labor union meetings begin
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Key labor meetings are being held this week by North America’s largest longshoremen union ahead of a threatened strike at East Coast, Gulf Coast ports.

U.S. East Coast and Gulf Coast ports handle 43% of all U.S. imports and billions of dollars in trade monthly, but companies have been moving shipping containers to the West Coast over strike fears.

A series of key labor meetings being held this week by North America's largest longshoremen union could provide insight into the likelihood of a strike by workers at U.S. East Coast and Gulf Coast ports threatened for October 1.Delegates representing chapters of the International Longshoremen's Association, are meeting Wednesday and Thursday to discuss a proposed contract with the wage scale committee.

Fears of an October strike have already motivated U.S. shippers to import their back-to-school and holiday items early to avoid delays in delivery. Back in March, logistics managers "Carriers say rail dwells and chassis shortages could become an issue during the next two months if Southern California's already busy docks continue to receive extra volume because of a potential port strike over the East and Gulf coasts and rail disruption in Canada."

She noted that the automotive industry, as an example, operates on a just-in-time inventory model, so it isn't set up to have extra inventory sitting around."If a strike occurs, automotive and other industries that operate on a similar model would be more affected since they don't typically have a backlog of freight to pull from. U.S.

A series of opposing statements from both parties in August have led to increased worries about a strike. Unlike the West Coast ports, East Coast ports have a history of resolving labor issues and hammering out new contracts ahead of a port work shutdown. The last work stoppage in 1977, lasted 44 days.Sea-Intelligence has estimated a one-day strike by the ILA would take five days to clear. A one-week strike in October could cause slowdowns until mid-November.

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