Daily Newsletter

25 September 2024

Daily Newsletter

25 September 2024

Port strike threat looms as AAFA urges Biden intervention

The American Apparel & Footwear Association (AAFA) president has issued an urgent plea to President Joe Biden, calling for immediate intervention in the stalled labour negotiations between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) which he warns could result in “coastwide disruptions” with 36 ports.

Isatou Ndure September 25 2024

The AAFA warns of severe consequences if the East and Gulf Coast ports experience disruption, which could impact 36 ports from Texas to Maine.

Steve Lamar, president and CEO of AAFA, expressed concerns in a letter to the President, emphasising the lack of progress in negotiations since June due to wage disputes.

Lamar explained that each day of port disruption would generate a five-day backlog, forcing importers to divert shipments to the already strained West Coast ports, potentially causing logistical chaos.

He cautioned that without an agreement by the end of September, a coastwide disruption would result in operational shutdowns, leading to long-lasting repercussions for the shipping industry and the broader US economy.

Just Style understands that the East and Gulf Coast ports are responsible for 53% of US apparel, footwear, and accessories imports, valued at over $92bn annually.

The timing of the disruption coincides with the peak holiday shipping season, and any delays could lead to product shortages and higher prices for consumers. With inflation only recently showing signs of stabilising, “American families will face a surge in prices and product shortages not seen since the pandemic. ... Now that we are one week away from a major disruption, the situation is dire, and we need your help now," said Lamar.

The AAFA is not the only organisation that has been trying to help avoid potential labour strikes.

On 5 September, the National Retail Federation (NRF) issued a second call for ILA and the United States Maritime Alliance to resume contract negotiations, with NRF president and CEO Matthew Shay expressing concerns that a potential strike “would significantly impact retailers, consumers and the economy.”

A few days later, NRF vice president for supply chain and customs policy Jonathan Gold shared how he believed this was a “critical time” as retailers prepare for the all-important holiday season, and how every port in the country needed to be working at full capacity.

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