With one week until deadline, strike preparations begin at the Port of New York
The Port of New York-New Jersey is suggesting shippers wind down all cargo business as it prepares for a massive strike next week.
NEW YORK – The Port of New York-New Jersey is suggesting shippers wind down all cargo business as it prepares for a massive strike next week, when some 45,000 East and Gulf Coast dockworkers are set to walk off the job.
“Although we remain hopeful that an agreement will be reached between the ILA and USMX prior to the expiration of the contract at 11:59 p.m. on Monday, Sept. 30, preparations are underway for a potential strike effective 12 a.m. Tuesday, Oct. 1,” port officials said Tuesday.
“It is important that you do everything possible to pick up your import cargo before close of business on Monday, Sept. 30, as there will be no opportunities to deliver any cargo once a strike begins,” port officials continued.
Contract negotiations between the two parties have completely stalled, with no further talks currently on the schedule. Key obstacles have been regarding wages and increased automation.
Last week, the Biden Administration said it would not block the strike. However, it could still help mediate. According to Reuters, the U.S. Dept. of Labor has reached out to the USMX, suggesting the Administration wants to assist in a successful mediation. Last year, the Biden Administration helped mediate a successful negotiation in a similar ordeal at West Coast ports.
Customs broker and procurement firm CV Intl., which does business with many furniture importers, said last week that a work stoppage seems likely.
“Whether the strike lasts for a few days or longer, congestion will cause delays for shippers across the country,” said Rachel Shames, vice president of pricing and procurement.
Shames predicts import volumes to be softer in the coming months, making it harder for carriers to keep spot rates high.
“Demand for freight into West Coast ports has increased ahead of the East and Gulf Coast contract deadline, though overall volume from Asia to the US has slowed from the peak in June/July,” she said. “Rates to all U.S. destinations are down considerably as well from their recent peak. China factories and offices will be closed for the first week of October, the Golden Week holiday, and ocean carriers have implemented significant blank sailings in response to the expected further slowdown.
“Carriers are hoping to stem the tide of rate reductions; they have attempted to maintain two short-term rate levels, a standard FAK level and a more aggressive spot level that applies by specific vessel.”
She urged shippers to plan ahead, communicate quarterly forecasts and ensure bookings are placed at least three to four weeks before sailing.
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