The International Longshoremen Association (ILA), representing about 85,000 port workers at U.S. East and Gulf Coast ports, is taking a stand in its labor negotiations. With a new labor contract needed soon, the ILA has suspended contract negotiations with the U.S. Maritime Alliance (USMX), which represents employers at the ports because of a dispute over automation, ILA leadership has signaled a hard line on the issue in the new labor agreement due to begin on October 1.
Our take: This, and the potential strike at Canadian railroads (see below), are two labor issues that may impact supply chains later in 2024 that shippers need to be watching. Both could force importers to consider alternate ports and their inland routing options.
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Continuing the theme of labor strife, the potential for a rail strike in Canada is increasing. Final submissions to the Canada Industrial Relations Board (CIRB) from rail companies and the union — Teamsters Canada Rail Conference — reveal that neither believe a strike would disrupt essential services or cause any serious safety issues. However, Canadian National (C.N.) and Canadian Pacific Kansas City (CPKC) say they can’t operate solely on transporting essential goods. In contrast, the union says their all-or-nothing stance violates their right to strike.
The CIRB process does not impact continued bargaining with the TCRC union; however, the involved parties have failed to agree on most points, with the union signaling a strike is coming.
Our take: As with the labor negotiations on East/ Gulf Coast ports, this is a critical issue for importers to watch closely.
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The rankings for the top 20 ports in the world are in. According to the newest Container Port Performance Index (CPPI), East and Southeast Asia take the prize, ranking 13 of the top 20 in 2023. China’s Yangshan Port is the top spot for the second year in a row, and Oman’s Port of Salalah held on to second place. In 2023, the CPPI added 57 new ports, totaling 405. Asia and Oman, Estonia, India, Tanzania, and some Middle Eastern ports were also ranked in the top 20. In contrast, no American parts were in the top 50, let alone the top 20. For 2023, Charleston is the highest-rated U.S. port, which came in at number 53.
Our take: This should be a wake-up call for U.S. ports and a reminder to importers to consider alternate ports of entry that may provide faster entry closer to your consignees.
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