If this is not settled, the disruption to the supply chain could exceed what we saw during the “covid shutdown.”
Late last week, the CEO of Flexport – one of largest US supply-chain logistics operators – warned that “the biggest wild card in the presidential election that nobody’s talking about? The looming port strike that could shut down all East and Gulf Coast ports just 36 days before the election.”
The Port Authority of New York and New Jersey is “coordinating with partners across the supply chain to prepare for any impacts” from a possible work stoppage by workers represented by the International Longshoremen’s Association as they negotiate with the United States Maritime Alliance (USMX), a Port Authority spokesperson told CBS MoneyWatch on Friday.
“We urge both sides to find common ground and keep the cargo flowing for the good of the national economy,” added the spokesperson, noting that $240 billion in goods move through the two ports each year and that such trade supports more than 600,000 local jobs.
On September 5, delegates from the International Longshoremen’s Association (ILA), the largest union of maritime workers in North America, unanimously affirmed its President Harold Daggett’s call for an East Coast and Gulf Coast work stoppage beginning October 1, 2024, should the union and the United States Maritime Alliance (USMX) fail to finalize a new contract before the September 30 deadline.
The potential work stoppage creates tremendous risk for global supply chains—especially on the eve of a busy holiday season and before the Presidential election in November.
Read on for Flexport’s breakdown—what they know, what’s at stake for U.S. supply chains, and their to Flexport customers.
https://www.flexport.com/blog/ila-usmx-work-stoppage-updates/
Hat tip to Tyler Durden.
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