Operations Disrupted at 36 Ports Along US East and Gulf Coasts
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Breakbulk movers are considering their options as an industrial dispute affecting dozens of U.S. ports continues with no resolution in sight.
Dockworkers across ports along the U.S. East and Gulf Coasts began industrial action just after midnight on Tuesday as talks between the International Longshoremen's Association union and the United States Maritime Alliance (USMX) over higher wages and improved job security broke down.
The industrial action is affecting operations at some 36 ports employing around 45,000 workers from the northern states of Massachusetts and New York down to the southern states of Texas and Louisiana.
Colin D’Abreo, VP director of Rhenus Project Logistics Global, said the company had anticipated the strike and had delayed incoming cargoes for the middle of the month “at the earliest.”
“We are hoping that the administration steps in to get the parties to come to a deal quickly or in the worst case invoke the Taft-Hartley Act (a 1947 federal law that limits industrial action),” D’Abreo told Breakbulk. “If the strike goes on further, we could see having our part-charter vessels call alternate non-union ports or divert to Montreal for our East Coast cargoes since the unions there will have a three-day strike.”
Cargo carrier Air Charter Service (ACS) said it anticipated “major airlifts in the coming weeks” if the strike were not resolved in the coming days, as manufacturers could attempt to keep production lines running.
“The strike causes real headaches for shippers, particularly from Europe. Unless President Biden changes his mind and steps in, the delayed cargo and the backlog will have to be flown in,” said Dan Morgan-Evans, group cargo director at ACS.
“Scheduled freighters will get booked up extremely quickly, so the charter industry will need to step in to help. We are already receiving enquiries, and we expect the first few to book soon, as some cargo shipments simply cannot wait. During the West Coast port strike in 2012, we saw a huge amount of charter flights to, but mainly from, Asia, both during and after, to ease the backlog.”
Ports and terminals in the region have experienced varying levels of impact.
Port Houston confirmed that while gates had been shut at its Bayport and Barbours Cut Container Terminals and all container operations suspended, ILA-supported general cargo and multipurpose facilities had not been impacted. “Our business continuity plan is in place, and we are prepared to ramp up recovery operations as soon as an agreement is reached,” the port said in a statement.
The Port of Philadelphia, or PhilaPort, said operations had been halted at its Packer Avenue Marine Terminal, Tioga Marine Terminal and Pier 122 and Pier 80 facilities, while the Port of Virginia said it had closed several of its terminals including the Newport News Marine Terminal, the port authority’s main breakbulk and RoRo facility.
Florida’s Jacksonville Port Authority, or JAXPORT, said the strike would impact about one third of its business, particularly container volumes operated by SSA Jacksonville and vehicle volumes. “The remaining two-thirds of JAXPORT’s business, including the majority of Puerto Rico cargo, will continue normally,” the port said in an update.
Not all ports in the region have been affected by the dispute.
Galveston Wharves, the city entity that manages the Port of Galveston, one of the busiest ports in Texas, said ILA “locals” who provide services at the port had confirmed its cargo and cruise operations would run normally. “We continue to monitor the situation and will provide updates if anything changes,” Rodger Rees, Galveston Wharves port director and CEO, told Breakbulk.
PHOTO CREDIT: Rhenus Group
