We wanted to bring you the latest on what we’re hearing concerning the ILA/USMX discussions.
Negotiations over the weekend broke down and no further official meetings between the two sides have taken place since. With no formal intervention by the government, the ILA will strike as of 00:01 ET on Tuesday, October 1st. Although the President recently stated he would not invoke Taft-Hartley, invoking the act could be an option for the government as this situation progresses. But even if it is invoked, Harold Daggett – ILA’s President and Chief Negotiator – has reportedly stated that workers would come back but work slowly for 80 days and then go back on strike. The ILA has said it will make a public statement on Tuesday, October 1st, at 11am ET.
Terminals at affected ports on the east and gulf coast stayed open as long as possible until low staffing necessitated their closure. We want to reshare the overview of carrier surcharges we’re aware of that will come into effect from the stated Effective Date for shipments to and from the affected ports:
Some other notices to mention:
- We have also seen ONE issue Force Majeure on a number of vessels – we expect other carriers to consider this option too
- There is a 3-day strike at the port in Montreal, and while this will add to the congestion as it was a possible alternative port option, this is not thought to be directly connected to or coordinated with the ILA
- We mentioned in our last communication that the US Federal Maritime Commission issued an industry advisory stating all its statutes and regulations remain in full effect – read the full advisory here. This will help prevent against unlawful activities in the industry
- The Chinese National Golden Week Holiday begins on October 1st and runs until October 8th, where Chinese production is vastly reduced. This could be a brief window of relief, as the influx of new bookings into the supply chain will be minimal over the coming week
Alba will host a webinar later this week to discuss the ILA/USMX topic and take as many of your questions as we can – please look out for the invitation soon.
