Mr. Connor: Let’s hope the new contract (whenever an agreement is reached) expires on April 30, 2028, the day before the deal. Possibility of a general strike.
That is, according to WSWSLongshoremen on the East Coast and Gulf Coast are vulnerable to the lack of solidarity between longshoremen and railroad workers on the West Coast:
Class I railroads are supporting the effort, with North American railroad CSX declaring it will accept a strike if it occurs, saying it will “secure traffic port by port as long as we can safely access our terminals.” did. Imports “until the port goes on strike.” Railroads will also play a key role in returning freight diverted to the West Coast to the eastern United States.
West Coast ports have also seen a steady increase in traffic over the past few months as companies redirected shipments to the other side of the country. By July, the West Coast’s share of U.S. imports had jumped to 50% from a low of 44% during the same period last year.
These numbers are likely to increase further. The Ports of Los Angeles and Long Beach were at 80% and 70% capacity, respectively, as of September, meaning they have room to accept more cargo and may even exceed capacity.
By Anna Nagourney, Professor and Eugene M. Eisenberg Dean of Integrated Studies at Massachusetts Amherst. It was first published in conversation.
Whether you’re buying a can of sardines or a screwdriver, the supply chain must function properly to get the product to the consumer.
Labor availability is essential at each link in the supply chain. This includes the workers who make sure that canned fish and other useful tools travel smoothly from their point of origin to their final destination, whether it’s a supermarket, hardware store or doorstep.
Surprisingly, 90% of internationally traded products are transported by ship At some point. In the midst of the COVID-19 pandemic, that was hard to avoid. Notice supply chain disruption. U.S. ports have experienced multiple jams. Demand for products that are more or less popular than usual has become unstable. A shortage of truck drivers and other freight service providers has wreaked havoc on land and sea transportation networks.
Consumers were furious Viewed all empty shelves. they are Surviving price hikes It’s for items that are suddenly in short supply, such as hand sanitizer, computer equipment, and bleach.
I supply chain management scholar a person who belongs to Research group studying how to create a supply chain Improves tolerance to interruptions. Based on that research, plus what I learned while writing the article, Books on labor and supply chainsI am worried that there will be disruption to the cargo arriving on the ship.
Concerns about pay and technology
The six-year agreement between the International Longshoremen’s Association and East Coast and Gulf Coast ports will expire at midnight on September 30, 2024, unless the two sides reach an agreement by the deadline. If there is no breakthrough, 45,000 dockworkers to go on strike That would cripple ports from Maine to Texas.
If they quit their job, it would be something like this: This is the first such work stoppage at an East Coast port since 1977..
Labor and management are at odds over the amount of wage increases, and labor unions are also calling for limits on wage increases. Using automation The new contract covers cranes, gates and trucks at the port. What the trade union wants is 77% salary increase over the next 6 years And they worry about job losses due to automation.
West Coast longshoremen who are not on strike are paid much higher regular wages than East Coast and Gulf Coast longshoremen who are preparing to strike. Workers on the West Coast earn at least an estimated $116,000 a year for a 40-hour work week. $81,000 to East Coast and Gulf Coast longshoremen Overtime pay is not counted and will be taken home.
Management is participating in negotiations on behalf of the American Maritime Association. Major shippers, terminal operators, port managers.
As a strike looms, White House officials are calling on longshoremen and port operators to resolve their differences.@SethHarrisThe former top labor policy adviser to President Biden joins Yahoo Finance to discuss: pic.twitter.com/rund2TWQI3
— Yahoo Finance (@YahooFinance) September 27, 2024
What to expect if a strike occurs
In the event of a strike, up to 36 ports would have to cease operations and would be nearly blocked. Half of all cargo entering and leaving the U.S. is by ship..
If the strike lasts just one day, it will probably go unnoticed by the average consumer. But there’s no doubt that businesses of all kinds are feeling the pinch. JP Morgan expects a strike may occur Costing the U.S. economy $5 billion every day.
Even if a strike only occurs for one day, it can take about five days to complete. straighten the supply chain.
If the strike lasts a week, the results will be immediately apparent to most consumers.
Some shipping companies are already began to reroute cargo To the west coast. Even if there were no strikes at all, costs would rise and warehouses could become scarce.
impact on everything From bananas and cherries to chocolate, meat, fish and cheese. The situation could be serious, with transportation disruptions potentially disrupting trade in some prescription drugs. If the strike lasts at least one week.
If the strike continues for more than a month, there is a possibility that factories will run out of supplies. Many consumer products may no longer be delivered. Workers will be fired. U.S. exports, including agricultural products, may be held up without being shipped to their destinations. Inflation could rise again. And there will be new events of heightened economic insecurity and uncertainty. huge economic loss.
Meanwhile, West Coast ports will face unusually high demand for their services, wreaking havoc on shipping there.
Yes, no bananas
My research group’s latest research on the effects of supply chain disruptions and various transportation disruptions, including delays, quantifies their impact on fresh food quality. we, banana case study.
This is not a niche problem.
Bananas are the most consumed american fresh fruit.
Many of the bananas sold in the United States are Ecuador, Guatemala, Costa Rica. Approximately 75% of them Arrive at ports on the East Coast and Gulf Coast.
Bananas are relatively easy to ship, but require proper temperature and humidity. Even under the best of conditions, quality will suffer. Long delays mean shippers are trying to push mushy brown bananas onto consumers who may reject them.
Alternatively, banana producers may choose to look for other markets. It is natural to expect that there will be fewer bananas, the price will be much higher, and perhaps the quality will be lower. Flying bananas to the US is too expensive to sustain.
Raw meat and other chilled foods It may rot before it completes its journey.fresh berries, along with other fruits and vegetables, can perish before reaching their destination.
If there is a port strike, large quantities of fresh produce, including bananas, will arrive after October 1st. eventually has to be thrown away. It’s a shame considering that Rising food insecurity US rate
Taft-Hartley Act of 1947
Requested by over 170 industry organizations The Biden administration will likely intervene at the last minute to avert a strike.
Government can invoke 1947 law Taft-Hartley methodThis allows the president to ask a court to order an 80-day cooling-off period if public health or safety is at risk.
but, President Joe Biden reportedly has no plans to invoke it. It’s like him. Encourage both parties to resolve their differences.
So if you’re planning on baking banana bread or thinking about starting your holiday shopping early, it’s a good idea to get out shopping as soon as possible, just to be safe.
