Teamsters, railroads rush to action ahead of ILA union shutdown | Wilnesh News

With port strikes up and down the East Coast and along the Gulf Coast likely to begin strikes after midnight Monday, the remaining time is critical to moving as much trade as possible before a shutdown that would severely harm the U.S. economy, logistics industry executives told CNBC. operation.

A total of 54,456 twenty-foot equivalent units (TEU) arrived on Friday at 14 ports operating under a master contract between the International Longshoremen’s Association and the International Longshoremen’s Association, according to ImportGenius, which tracks bills of lading, digital receipts for cargo containers. Maritime Union (USMX) expires at midnight on Monday. Based on MDS Transmodal’s estimate of $50,000 per container, the freight is worth approximately over $2.7 billion. During the working days between September 23 and 27, these ports estimated a total of 273,417 TEUs worth approximately US$13.67 billion through customs.

Alan Baer, ​​chief executive of OL USA, said the volume of shipments arriving on Friday alone showed that logistics companies were busy getting containers off the docks before Monday’s close. “Importers should coordinate with logistics partners to clear as many containers as possible from open terminals to avoid possible delays in procuring inventory,” Bell said.

On average, it takes a week to clear a one-day port closure. As much as 43% to 49% of total containerized cargo entering the United States is handled through East Coast and Gulf Coast ports.

ImportGenius CEO Michael Kanko told CNBC that the economic importance of ports affected by the ILA strike is profound. “As our data shows, even a week of strikes can prevent hundreds of thousands of containers from flowing into the United States,” he said. “These ports are also the main gateways for refrigerated products entering the United States. Time is not on the importer’s side.”

“Every importer, exporter, and even domestic shippers should pay close attention to developments this week, as port strikes at U.S. East Coast and Gulf Coast ports could impact all modes if strikes occur and last longer. .

The ILA is the largest longshoremen union in North America. The ILA said in a social media post on Sunday that its 85,000 members would join the picket line at 12:01am on Tuesday, October 1, “in solidarity with tens of thousands of longshoremen and maritime workers around the world.” There were strikes at all Atlantic and Gulf Coast ports from Indiana to Texas.

Approximately 50,000 ILA union members work in Boston, New York/New Jersey, Philadelphia, Wilmington, NC, Baltimore, Norfolk, VA, Charleston, SC, Savannah, GA, and Jacksonville, FL , Tampa, FL, Miami, New Orleans, Mobile, AL, and Houston.

According to Reuters, no negotiations were ongoing and planned ahead of Monday’s deadline.

Recently, senior Biden administration officials, including Transportation Secretary Pete Buttigieg, Acting Secretary of Labor Julie Su, and National Economic Council Director Lael Brainard, respectively spoke with USMX and ILA representatives, urging all parties to Reach a fair agreement. The Biden administration has repeatedly said recently that it will not use federal power to force longshoremen to keep working. “We have never invoked the Taft-Hartley Act to stop a strike and are not considering doing so now,” a White House official said.

The Taft-Hartley Act, passed in 1947, was a revised version of U.S. laws governing industrial relations and union activity that empowered the U.S. president in the event of a threat to the “national health or security.”

The union suspended negotiations with USMX in June over issues such as the use of port automation and wages, while the port ownership group said in recent weeks that the ILA continued to “strongly hint” that it had made the decision to strike.

The port strike could threaten recent gains in lowering inflation and the prices consumers pay for a variety of goods, and could provide another talking point for former President Donald Trump on the economy, a key voter issue in the final month of the campaign.

Based on previous port strikes, ocean carriers typically profit from higher freight rates due to higher demand at other ports, as well as detention and demurrage charges for containers held up during port closures. Analysts have been warning that ocean freight spot prices could rise by 20%-50%. UBS forecasts that 20% of Maersk’s total throughput will arrive at U.S. ports affected by the strike. Maersk is a board member of USMX. UBS estimates that if freight rates rise 30% over two quarters, it will generate more than $1 billion in revenue growth.

Meanwhile, union support is a key issue for Democrats, with President Joe Biden recently emphasizing to reporters that he “doesn’t like” Taft-Hartley.

Business trade groups have urged the Biden administration to step in. -Hartley Law for working and negotiating. About 20% of respondents said they opposed federal intervention.

exist recent videos ILA President Harold Daggett, whose rank-and-file union members voted unanimously to authorize the strike, has threatened to retaliate if the Biden administration uses the Taft-Hartley Act to force union workers back to the docks Deliberately slowing down workers’ container shipments. “You’d better sit down, let us sign a contract and move on,” he said.

U.S. customs data showed that a variety of products were still arriving at the Port of New York/New Jersey, the largest port on the East Coast, on Friday, including containers containing cosmetics and fragrances. Estee Lauder and L’Oréal, automotive parts and tires, as well as electrical materials and circuit breakers from the automation and electrical leader ABB.

Over the past week, retailers from Walmart to Walgreens have received hundreds of containers filled with winter clothing, food, electronics, towels and holiday supplies, from Disney Halloween ornaments to Christmas light strings.

Walmart The company is the largest importer of all threatened ports, according to ImportGenius data.

A spokesman for the Port Authority of New York/New Jersey said it was closely monitoring the situation. The port began preparing for the strike two weeks ago.

“We are coordinating with partners across the supply chain to prepare for any potential impact,” the spokesperson said. “Our ports support more than 600,000 regional jobs and $240 billion in cargo passes through each year. Here, we urge both sides to find common ground and keep goods flowing for the benefit of the national economy.”

Depending on the duration of the strike, the cost to the U.S. economy could run into tens of billions of dollars. for port of The economic impact could be as high as $641 million per day in New York/New Jersey; in Virginia, it could be $600 million per day, according to Miter’s analysis.

U.S. East Coast port throughput is expected to reach 2.3 million TEUs in October. This means 74,000 containers are transported every day, with a daily freight value of up to $3.7 billion.

Steve Lamar, president of the American Apparel & Footwear Association, recently told CNBC that disruptions at Eastern and Gulf Coast ports will have a significant impact on the cost and supply of apparel, footwear and travel items, as more than half of all apparel, footwear and travel items and accessories move through these ports.

German shoe giant Birkenstock shoes More than 32,000 packages and goods were imported and processed at the Port of Virginia in Norfolk between September 23 and 27.

A subsidiary of Amazon Services, Inc. amazon.com A company that provides e-commerce services to third-party sellers, more than 26,000 mini smart cameras and other products have arrived and cleared customs between September 23 and 25.

Between September 23 and 26, more than 64,000 items in Ace Hardware’s 57 containers passed through customs.

Anheuser-Busch InBev It is also one of the major importers whose products have been cleared through customs in recent days.

Paul Brashier, vice president of global supply chain at ITS Logistics, said he has been having conversations with customers about freight strategies over the past two weeks.

“If shippers wait until Monday to add trucks to pick up cargo, I think it may be too late to move available containers out of the terminal so they can avoid incurring excessive demurrage during the strike,” Brashear said. “Shippers should not be lulled into a false sense of security during the strike, as was the case during the COVID-19 pandemic, when supply chain disruptions did not occur until shutdowns resumed,” he said. “

In a recent advisory to customers, the Georgia Ports Authority recommended delivery “as early as possible by October 1 to minimize any disruption.”

In addition to clothing, the Port of Savannah saw thousands of LED panels Friday, Kerig Coffee winemakers and wine Constellation brand. In Port Houston, Tempur-Pedic mattresses and products are used in home depot and IKEA were confirmed to arrive on Friday.