Retailers sound alarm on imminent port strike

Retail groups are urging the Biden administration to intervene and for both parties to return to the negotiation table ahead of a potential strike by dockworkers on the East and Gulf Coast ports.

With negotiations between dockworkers and port operators stalling, the existing labor contract between the International Longshoreman’s Association (ILA) and the United States Maritime Alliance (USMX) is set to set to expire on Sept. 30.

“Given the economic stakes and both parties’ inability to reach an agreement to date, it’s imperative the Biden-Harris administration engage directly to encourage a swift resolution,” stated the Retail Industry Leaders Association (RILA). “There is still time to get both sides back at the negotiating table and find an agreement.”

The Los Angeles and Long Beach ports are the busiest U.S. ports, with the highest volume of import/export freight, noted Tracey Ortiz, director of product management at SPS Commerce. However, in 2024, the Eastern port volume as a whole has spiked 20% over 2023.

“First, Houston saw an increase in volume and last year, Savannah started to see spikes,” said Ortiz. “Now Savannah is projected to be the busiest U.S. port in the next five years. So, with a large shift of cargo heading for Eastern ports, the risk of immediate impact on the supply chain is very high.”

RILA noted that the ripple effects of a strike — port congestion, vessel delays and missed shipments, increased shipping costs, inventory challenges and more — would amount to yet another round of supply chain disruption and uncertainty. 

“It is unfortunate that talks were seemingly stalled to prepare for a strike rather than to continue forward and find a solution,” RILA stated. “And although retailers have already activated contingency plans to help mitigate its effects, the longer a work stoppage goes on, the harder it will be to do so.”

RILA joins over 170 organizations representing a broad coalition of industries, as well as a nearly 70 U.S. House lawmakers calling on the White House to engage.

Source is https://shorturl.at/nRGnX

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