Daily Newsletter

14 March 2024

Daily Newsletter

14 March 2024

AAFA urges Biden to intervene on labour issues to avoid US port gridlock

The American Apparel & Footwear Association (AAFA) has sent a letter to President Biden urging the administration to restart labour contract negotiations with dockworkers to avoid US East and Gulf Coast port disruptions.

Isatou Ndure March 13 2024

The AAFA wants the administration to “immediately engage” in the ongoing labour contract negotiations involving the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX).

The AAFA explained more than half of all apparel, footwear, and accessories travel through the East Coast and Gulf ports of the US. Plus, it states that its members are already dealing with existing supply chain challenges exacerbated by the Panama Canal drought and Red Sea security crises.

As a result, the AAFA believes any slowdown at the US East and Gulf Coast ports will cause significant delays, cost escalations, and further inflationary pressures.

The AAFA adds that the potential disruption in the East Coast ports could impede efforts aimed at mitigating migratory pressures along the nation's southern border.

Steve Lamar, President and CEO of the AAFA commented: "Because so much of the trade with Central America comes through the East and Gulf Coast ports, any disruption would undermine that partnership, putting at risk the work we are doing in concert with the vice president’s Call to Action."

Highlighting the urgency of the matter, the letter emphasises that the existing contract, which affects 45,000 dockworkers across 36 ports from Texas to Maine, is set to expire on 30 September 2024.

Negotiations, which initially started in March 2023 encountered a deadlock after only a brief period of deliberation.

Any work slowdown or stoppage in the lead-up to or following the contract's expiration is described as having a “devastating impact on American consumers, American workers, and the US,” the AAFA said.

This latest advocacy initiative from the AAFA follows a sequence of efforts geared towards ensuring the smooth functioning of ports, including last year's engagement in negotiations concerning West Coast ports and advocacy for safeguarding commerce via the Red Sea.

Yesterday, (12 March) the AAFA renewed its board of directors leadership with BBC International's CEO Josue Solano stepping into the role of AAFA chair, alongside the appointment of 15 new and re-elected board members.

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