⚡The next American and Global supply chain crisis is here. 45,000 dockworkers at every major eastern and Gulf Coast port will be on strike, starting today. After weeks of fruitless negotiations and the Biden administration signaling it would not force the dockworkers back to work, the stage is set for a potentially devastating supply chain crisis. The ILA is demanding higher wages and a ban on the automation of the cranes, gates, and container movements used at 36 U.S. ports.
👉The ramifications will be significant: A strike will cause complete stoppages at all involved ports of container and bulk cargo Vessels will drop anchors outside ports and await the dockworkers coming back to work. And the impact will be global regarding vessel and container capacity and schedules. Looks like an exciting holiday season is ahead of us!
👉Some might say this situation is comparable to the COVID disruptions but it is not. The COVID challenges were caused by significant increases in cargo volumes and a lack of operational capacities to cope with the throughput – in port terminals, rail, and truck as well as warehouse capacity.
👉For more details refer to the official ILA statement issued yesterday
ILA Update – Monday, September 30, 2024 at 11 am
NORTH BERGEN, NJ: The International Longshoremen’s Association (ILA) reports that United States Maritime Alliance (USMX) continues to block the path toward a settlement on a new Master Contract by refusing ILA’s demands for a fair and decent contract and seems intent on causing a strike at all ports from Maine to Texas beginning in almost 12 hours.
“The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject”, the ILA said. “ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing. It’s disgraceful that most of these foreign-owned shipping companies are engaged in a ‘Make and Take’ operation: They want to make their billion-dollar profits at United States ports, and off the backs of American ILA longshore workers, and take those earnings out of this country and into the pockets of foreign conglomerates. Meanwhile, ILA dedicated longshore workers continue to be crippled by inflation due to USMX’s unfair wage packages. “ “In addition, the shippers are gouging their customers that result in increased costs to American consumers. They are now charging $30,000 for a full container, a whopping increase from $6,000 per container just a few weeks ago. In just a short time, they went from 6K, to 18K, then 24K and now $30,000. It’s unheard of and they are doubling their $30,000 fee stuffing the same container from multiple shippers. They are killing the customers.”
👉 Once again an excellent example of the importance of structured supply chain risk and crisis management supported by effective emergency plans and early preventive measures. We are happy to share our thoughts and experiences building robust supply chain risk management programs.
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