According to Allyn International, the International Longshoremen’s Association (ILA) is making preparations for a series of major strikes along the Atlantic and Gulf Coasts in early October, which are likely to disrupt automotive supply chain and other industries. U.S. West Coast, Canada and Mexico are seeing a potential alternatives should this become a reality, leaving shippers with less than a week to have in place contingency plans.
The strike comes on the back of ILA’s master contract with the United States Maritime Alliance (USMX) expiring at the end of September. There are some concerns regarding automation and wage disagreements which have stopped negotiations. Whilst the current ILA-USMX contract includes ports in the States such as Texas, Maine, New York, New Jersey and Florida, there could be disruptions experienced in other regions and industries.
So, whether you are a shipper, export and/or importer, consider alternative shipping routes or establish a multi-coastal transportation network ahead of time. On time-sensitive goods, traders and shippers may consider airfreight as a potential alternative as well.
Make sure to speak to your freight forwarding/shipping/transport partners if you are due to export to the US and goods movement may be affected by the East Coast strikes.
Source: Supplychaindive.com, Global Trade Newsletter, Allyn International
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