Deringer Recommends Acting Now to Prepare for Longshoremen Strike

Shippers should begin making alternate arrangements for routing their freight, in light of the potential East/Gulf Coast longshoremen strike or lockout, A.N. Deringer recommended Aug. 30. As a potential strike date draws closer, shippers and importers should consider the following. " With time running out for additional negotiations, Deringer recommends shippers implement contingency plans," it said.

It said freight destined to the East or Gulf Coast ports via all water routes must be on the water this week to arrive in time for containers to be offloaded prior to the contract expiration. It predicted overbookings, and said containers may be "rolled over" to alternate vessels/voyages in favor of shippers and importers considered by the carriers to be high priority. Loading delays can be expected overseas unless plans are made beforehand, it said. As a result of the looming strike, carriers are quoting mini-land bridge (MLB) services at rates in excess of 50 percent higher than last month, Deringer said.

The National Industrial Transportation League, meanwhile, asked U.S. Transportation Secretary Ray LaHood to nudge the parties back to the negotiating table. In an Aug. 29 letter, NITL President Bruce Carlton said his organization is "extremely concerned about the dire consequences that would impact the nation's freight systems and our economy as a result of a bi-coastal port shutdown." League members already have contingency plans in place to ease the impacts of a potential work stoppage, but any backup of freight and equipment in the affected ports will "have a domino effect" on domestic transportation systems resulting in costly delays, supply disruptions and scheduling hardships, he said. While it's best for the two sides to come to an amicable agreement, that can't happen if they don't talk, he said. "Only as a last resort should other measures be considered to head off a work stoppage." The Waterfront Coalition of shippers, transportation providers and others in the transport supply chain also urged the two sides to talk, saying a loss of business in the East and Gulf ports would have harmful local and national economic effects.