Industry Beginning to Prepare for Possible Longshoremen Strike, Deringer Says

Many importers and exporters are developing contingency plans for what is looking like a more-likely strike of longshoremen at East Coast ports, following the breakdown of talks between the International Longshoremen's Association and the U.S. Maritime Exchange, said freight information company A.N. Deringer. The ILA has not commented on the talks (See ITT's Online Archives 12082301).

Deringer said Asian cargo bound for the East Coast would be diverted to West Coast ports, causing long port and rail delays. And it said containers coming from Europe, the Mediterranean, and most of South Asia would be "nearly shut out." Some carriers may elect to go to Canadian ports, but there would likely be a long backlog at those ports as they juggle port handling and ship loading capacity concerns.

"One option is to increase inventory before the crunch time hits." Deringer said, so suppliers should make advance bookings in an attempt to protect space on West Coast and inland point intermodal or mini-land bridge sailings from Asia. It said goods can't be rerouted once the vessel has sailed, so arrangements to move European shipments through a Canadian port should be made at least 30 days in advance of the potential strike.

The ILA contract covering dockworkers at East and Gulf Coast ports in the U.S. expires Sept. 30. Further negotiations are not scheduled, but the ILA plans to ask USMX to make a final offer for the union's consideration. ILA thinks its members will reject the offer, making a strike likely.