The situation exacerbates tensions caused by Houthi rebel attacks on ships in the Red Sea
The union representatives of the International Longshoremen’s Association (ILA), which represents about 45,000 port workers from Maine to Texas, will meet for two days in New Jersey starting September 4 to discuss wage demands and prepare for a strike on October 1 if no agreement is reached beforehand. In this context, Vincent Clerc, CEO of Maersk, stated that a strike on the East Coast “would cause significant congestion on a heavily trafficked trade route”, but he did not believe it was likely to happen. Meanwhile, Rolf Habben Jansen, CEO of Hapag-Lloyd, asserted that the risk of a strike “has really increased”.
A strike by the ILA, according to the WSJ, would impact major East Coast ports in the U.S. (USEC): New Jersey, Virginia, Savannah (Georgia), and Houston, during the peak season for the retail sector that imports holiday season products. It would also occur just a few weeks before the presidential elections, posing a challenge for the Biden administration.
The fear of a strike has led importers this year to advance their shipping orders, causing a surge in cargo earlier than usual and driving up freight rates. This situation is exacerbating tensions in maritime transport networks caused by attacks from Yemeni Houthi rebels on merchant ships in the Red Sea.
Regarding the Negotiations
Harold Daggett, the head of the ILA, stated this month that collective bargaining on wages is “at a standstill” and that union members will go on strike if a new labor agreement is not reached before the current multi-year contract expires on September 30.
The union and the United States Maritime Alliance, which represents shipping companies and port employers, have been engaged in informal discussions for months but have not yet started formal negotiations covering contentious issues such as the use of automated machinery at the docks.
According to WSJ sources, the ILA is pushing for a 77% wage increase for workers over six years, much higher than the 32% increase achieved by the International Longshore and Warehouse Union (ILWU) for West Coast dockworkers last year. The same sources reveal that employers have offered approximately half that amount to USEC dockworkers, but the ILA is demanding more.
Source: MundoMaritimo
