The Retail Industry Leaders Association (RILA) and Shippers Coalition issued separate statements this week, voicing their concerns regarding the possibility of operational disruptions at East and Gulf Coast ports should an accord not be established by the impending deadline.
The ILA aims to reverse previous labour contract concessions related to automation, particularly concerning the use of semi-automated cranes for stacking containers at docks, claiming they threaten jobs.
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On the other hand, the USMX employer group contends that these rail-mounted gantry cranes are essential for maintaining competitiveness, especially as ports, particularly in China, advance in automation.
RILA, representing over 200 companies, stated: “Paralysing these critical global commerce gateways will lead to shipment delays, increased costs, and potential supply shortages that could impact multiple sectors of the economy. And the longer a work stoppage goes on, the more consumers will feel the ripple effects.
“With just ten days until the deadline for an agreement that averts a strike, leading retailers are implementing contingency plans and working to try to keep inventory moving and limit the impact to consumers. But the ability to keep the engine of global trade fully revving in this case lies with the ILA and USMX.
“Too much is at stake, at home and abroad, to lead off the year on the wrong foot with a major labour strike. We urge both parties to remain at the negotiating table until a deal is reached, and help our economy start the new year well-positioned for success.”
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By GlobalDataThe Shippers’ Coalition has also expressed its dedication to collaborate with stakeholders and policymakers to ensure uninterrupted operations at the nation’s ports in the upcoming weeks.
According to a recent report from the National Retail Federation (NRF) and Hackett Associates’ Global Port Tracker, there is an anticipated surge in imports at major US container ports continuing through spring 2025 as retailers endeavour to stockpile merchandise in anticipation of potential disturbances.
This influx is essential to stave off shortages but exerts additional strain on an already taxed supply chain. With labour discussions at an impasse, the threat of a strike looms larger, potentially hampering trade and leading to escalated costs for goods.
Shippers Coalition deputy executive director Alexis Oberg said: “Action must be taken immediately to prevent long-term consequences for US retailers, consumers, and the economy at large. If a fair negotiated agreement cannot be reached by 15 January, we would urge both parties to extend the contract extension and continue to negotiate. Further, we urge both President Biden and President-elect Trump and their teams to intervene in the negotiations and use all tools in their toolbox to prevent a strike and to ease supply chain disruptions should a strike occur.”
Meanwhile, a report from global publication Reuters said contract talks covering 45,000 dockworkers on the US East and Gulf Coasts were set to restart on 7 January 2025.
If an agreement is not reached by 15 January, workers at container ports responsible for handling over half of US ocean imports could strike just days before President-elect Donald Trump’s inauguration on 20 January.
A previous three-day strike by the ILA last October caused a surge in shipping costs and significant cargo backlogs across the 36 impacted ports.
In December, the American Apparel & Footwear Association (AAFA) issued a plea to the ILA to reconvene at the negotiation table and solidify a contract with the USMX.
Trade groups are calling for a quick resolution to ongoing East and Gulf Coast port labour talks before workers’ contracts expire on 15 January.
