The International Longshoremen's Association (ILA) has warned that its 85,000 members will strike on 1 October if a new contract is not agreed ahead of that date.

Shipper expectations that rates would collapse with the flood of newbuildings expected this year were dashed by the Middle East conflict and the absorption of much of the new tonnage into diverted Asia to Europe services, which now take the far longer route around the Cape of Good Hope.

A US East Coast strike could be the next spanner in supply chains with the deadline for contract negotiations 30 September and strike action already planned for 1 October.

US market consultant Jon Monroe said today: “As we approach the contract expiration, there are still no clear conclusions in the ongoing negotiations.”

Analysts Sea-Intelligence estimated that US East Coast ports would handle 2.3 million teu in October, which would equate to an impact of 74,000 teu per day if dockworkers were to strike.

Heaney also believes that USEC industrial action would “have an impact for sure, particularly on transpacific cargo, with increased flows into West Coast ports to counter the loss of East Coast capacity.”

Whether the East Coast disruption is realised remains to be seen

Story courtesy of Seatrade Maritime

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