Gcaptain is a well known maritime news website. It reports that there is a strike looming in USA docks and ports commencing October 1st 2024. If the strike goes ahead then it will be a shock to global shipping and supply chains. No goods in or out of USA. Ships from UK , Europe, China etc will be unable to collect or offload freight. And even if a settlement is quickly found, it will take many weeks to recover. In June 2024, USA was ranked 3rd on the list of places that Felixstowe Suffolk exports goods to. That will all cease immediately if the strike happens.
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| Gcaptain - US port strike looms |
As soon as there a USA strike, Imports to UK from USA will also cease. Trading Economics site says that UK imported almost £95Billion worth if goods in 2023-24. Empty containers will all be in the wrong place. Ports across the globe will be clogged up.
What's it all about?
The strike is because the Unions (international Longshoreman Assoc) has failed to agree new pay and benefits with the employers USMX (United States Maritime Alliance). ILA wants no cameras in the workplace, limited automation, guaruenteed hours, better healthcare benefits. USMX says they are industry leaders in pay rises.
Impact of a strike
The scale of the problems that a strike is likely to cause can be seen if you look at the ports that would be affected along the East coast of USA. New York, New Jersey, Savannah Georgia, Houston Texas, and Charleston S Carolina are all in the top 10 with millions of TEU. This image from freight company Pangea shows the millions of cotainers involved. The freight containers that we see on ships and lorries come in TEU (20ft equivalent unit) or FEU (40ft equivalent unit).
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| Pangea freight company |
LLoyds List comment
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| Lloyds List 10 Sept 2024 |
International Longshoreman's Association
The ILA is the largest union of port and dock workers in North America with around 85000 members along the Atlantic and Gulf coast.
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| International Longshoreman's Association |
The ILA held a meeting in New Jersey on 17th Sept 2024. They are ready to "strike on October 1st for wages and benefits they believe they deserve". Their employers, represented by the United States Maritime Alliance (USMX) has not yet put forward an acceptable new contract .
The Jones Act
Internal USA shipping may also be affected: Investopedia says that in the USA, Sec 27 of the Merchant Marine Act 1920 (known as the Jones Act) regulates all cargo traveling by sea between US ports. Cargo must be on ships that are American owned and built and with a majority American crew. So due to distance and costs, this has most affect on ports such as Hawaii, Alaska, and Puerto Rico . The law was put in place after WW1 to encourage USA shipping.
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| Investopedia - USA Jones Act |
To this blogger , the situation looks like something at least as serious as the Houthi in Yemen effectively closing the Red Sea route.