Maritime Employers Prepare For Dockworker Strike And Port Closures
According to CNBC and Trade Magazine, managers at the Port of New York/New Jersey are preparing for a full-scale work stoppage by the International Longshoremen’s Association, North America’s largest union. The strike could have far-reaching consequences, with nearly half of all U.S. monthly imports affected, equivalent to billions of dollars in trade, and logistics companies are preparing contingency plans last used during the pandemic and tariffs in 2018.
The ILA represents more than 85,000 dockworkers, and the strike would shut down five of North America’s 10 busiest ports on Oct. 1, as well as a total of 36 ports on the East and Gulf Coasts. Between 43% and 49% of U.S. imports and billions of dollars in monthly trade are at risk as the Oct. 1 deadline for a new EU contract looms. Cruise ship operations will continue.
Talks with port owners broke down this summer, and it’s unclear how much progress, if any, has been made. Recently, the Land of Israel Association voted unanimously to authorize the strike, while the American Maritime Union, a group representing port management, recently said it believed the union had made the decision to strike.
Beth Rooney, director of the Port of New York and New Jersey, told CNBC that shipping companies and individual terminal operators are announcing a gradual reduction in operations to avoid container backlogs. The Port of New York/New Jersey has discussed cargo management with ocean carriers and terminal operators in advance of any disruptions to ensure appropriate measures are in place to complete the movement of cargo out of the terminals before any closures.
