Major US
container ports brace for a busy September amid fears of a labour strike at
East Coast and Gulf Coast ports, according to the Global Port
Tracker report by the National Retail Federation (NRF) and Hackett
Associates.
NRF vice president for supply
chain and customs policy Jonathan Gold believes this is a “critical time” as
retailers prepare for the all-important holiday season, and every port in the
country needs to be working at full capacity.
“Many retailers have brought cargo in early
and shifted to alternate ports as a precaution, but it is vital that labour and
management at the East Coast and Gulf Coast ports actually sit down at the
negotiating table and bargain in good faith for a new contract so we can avoid
a disruption of any kind when their contract expires. A strike would be another
blow to the supply chain as it continues to face challenges, and to the
nation’s economy at a time when inflation is finally coming down and the Fed is
poised to lower interest rates.”
The contract between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance covering East and Gulf Coast ports is set to expire on September 30. NRF pointed out that ILA has continued to threaten to strike if a new contract is not reached by then.
Last week, 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.”
Meanwhile, Hackett Associates founder Ben Hackett argued that import levels are being impacted by concerns about the potential East and Gulf Coast port strike, causing some cargo owners to bring forward shipments, bumping up June-through-September imports.
Hackett said: “In addition, some importers are weighing the decision to bring forward some goods, particularly from China, that could be impacted by rising tariffs following the election.”