LEADING trade associations and retailers are urging US east coast and Gulf Coast box terminal bosses and unions to hold talks to avoid potential strike action in January.
A temporary contract between the International Longshoremen's Association (ILA) and US Maritime Alliance (USMX) agreed in October after three days of strikes is due to expire on January 15, sparking concerns of further industrial action.
In the past, industrial action at US ports has resulted in a modal shift to air as shippers have looked to avoid port logjams, according to London's Air Cargo News.
The US National Retail Federation (NRF) and a coalition of 267 other trade associations wrote to both groups to express their concerns about a potential second strike, which could take place just days before the government transitions to the new Trump administration.
'We know significant issues remain between the parties,' the letter said. 'However, we continue to believe the only way to resolve these issues and come to an agreement is to actually stay at the negotiating table.
'The continuing start and stop of the negotiations leads to further uncertainty in the supply chain, which continues to cause challenges.
'The additional costs from mitigation efforts as well as post-strike resumption are still being felt. Companies have continued to implement mitigation strategies because of the ongoing threat of another strike in mid-January if a new contract is not achieved.'
It is estimated that for every day a port is closed, it will take around five days for supply chains to return to normal.
SeaNews Turkey
A temporary contract between the International Longshoremen's Association (ILA) and US Maritime Alliance (USMX) agreed in October after three days of strikes is due to expire on January 15, sparking concerns of further industrial action.
In the past, industrial action at US ports has resulted in a modal shift to air as shippers have looked to avoid port logjams, according to London's Air Cargo News.
The US National Retail Federation (NRF) and a coalition of 267 other trade associations wrote to both groups to express their concerns about a potential second strike, which could take place just days before the government transitions to the new Trump administration.
'We know significant issues remain between the parties,' the letter said. 'However, we continue to believe the only way to resolve these issues and come to an agreement is to actually stay at the negotiating table.
'The continuing start and stop of the negotiations leads to further uncertainty in the supply chain, which continues to cause challenges.
'The additional costs from mitigation efforts as well as post-strike resumption are still being felt. Companies have continued to implement mitigation strategies because of the ongoing threat of another strike in mid-January if a new contract is not achieved.'
It is estimated that for every day a port is closed, it will take around five days for supply chains to return to normal.
SeaNews Turkey
