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Breaking news of the week that can dramatically impact the start of the year, The International Longshoremen’s Association (ILA) said Wednesday it has halted negotiations with maritime employers represented by the United States Maritime Alliance (USMX), over a new master contract stating a management proposal for introducing semi-automated equipment that would eliminate longshore jobs. The technology at the heart of the dispute is said to be what’s already in use at New Jersey and Virginia marine terminals. The union said they are intent on “restricting future use of technology that has existed in some of our ports for nearly two decades.”
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The ILA claims their focus was on modernization, not automation. The ILA has always supported modernization when it leads to increased volumes and efficiency. For over 13 years, their position has been clear: “We embrace technologies that improve safety and efficiency, but only when a human being remains at the helm.” “Automation, whether full or semi, replaces jobs and erodes the historical work functions we’ve fought hard to protect.”
The USMX said the talks to reach an agreement on a new master contract started with positive progress. “We were unable to make significant progress on our discussions that focused on a range of technology issues,” the group said. “Unfortunately, the ILA is insisting on an agreement that would move our industry backward by restricting future use of technology that has existed in some of our ports for nearly two decades — making it impossible to evolve to meet the nation’s future supply chain demands.” The USMX said that its technology proposals did not involve job losses but instead would improve worker safety, increase efficiency and capacity, and strengthen supply chains. But the union said the offer by the employer’s group, whose membership includes major container ship and car carrier operators, has a clear endgame — to establish semi-automation now on the way to full automation. We remain committed to securing a fair, equitable contract that ensures long-term stability for our ports and our nation’s economy,” the ILA said. “Our employers must understand that we are united, shoulder to shoulder, in this fight for the betterment of our hardworking members and their families.”
After a three-day strike in October, the ILA and USMX agreed to a contract extension that expires on January 15th . Both Trump, who will take control on January 20th, and current President Joe Biden have expressed support for the union. Trump has also echoed automation concerns. “They also don’t want to see new technologies, which in many cases don’t work very well,” then-candidate Trump said during the strike, according to a video published by Forbes. “A lot of times it doesn’t work. There’s nobody to talk to. It’s very inaccurate. I’ve heard a lot of complaints about these modernized stations — a lot of very big complaints.”
What will happen come contract expiration time as it seems unlikely that the government will intervene with the negotiations? Port X Logistics can help formulate a plan if you choose to divert your cargo to the West Coast and non-Union Ports and move it via Drayage, transloading and trucking. Port X Logistics is the Gold Standard in drayage, transloading and trucking. We track your containers from the time they leave overseas, dray your containers from all port locations and transload with plenty of photos provided and load to outbound trucks for the fastest over the road delivery with a shareable tracking app to track drivers all the way to final destination. Transload orders have been piling up as many shippers have been taking the early initiative to speed up deliveries whether it was an ocean delay or to avoid the rails, but we have all the capacity in the world for you! If you want more information on how you can get your cargo diverted at the port and on the road for a speedy delivery with full visibility contact Letsgetrolling@portxlogistics.com.
The breakdown in U.S. port negotiations comes after Canada’s labor minister, Steven MacKinnon, used his power to end strikes at ports in Canada. Strikes and lockouts have beset ports in Vancouver, Prince Rupert and Montreal. Labor Minister Steven Mackinnon said the negotiations have reached an impasse and he is directing the Canada Industrial Relations Board (CIRB) to order all operations to resume at the ports of Vancouver and Montreal and move the talks to binding arbitration. MacKinnon said $1.3 billion Canadian dollars ($930 million) of goods is affected every day. He said it was impacting supply chains, the economy and Canada’s reputation as a reliable trading partner. Business groups had been calling for government intervention to get the flow of goods moving again. The move to end the stoppages comes after the government stepped in to end halted operations at Canada’s two main railways in August – MacKinnon says he hopes operations can be restored in a matter of days. The Maritime Employers Association locked out 1,200 longshore workers at the Port of Montreal on Sunday after workers voted to reject what employers called a final contract offer. The workers were seeking raises of 20% over four years. The job action came after port workers in British Columbia were locked out amid a labor dispute involving more than 700 longshore supervisors, resulting in a paralysis of container cargo traffic at terminals on the West Coast. While the number of ships waiting for a berth is relatively small, it’s unclear when Vancouver’s marine terminals will be able to clear up the backlog due to a more limited pool of longshore labor available during November and December.
If you have questions on how the current state of the Canadian ports could affect your upcoming shipments, or how your shipments will even be affected after the ports come to terms with the Labor Unions, our team in Canada has years of knowledge and experience with all Canadian ports and we can dray, transload and provide crossborder deliveries to and from all Canadian ports. Contact the team at Canada@portxlogistics.com
Import TEUs are up .74% from this week from last week – with the highest volumes coming into Los Angeles at 20.5%, Long Beach at 16.3% and Tacoma at 9.5%. Retailers revised their import projections for November to an increase of 13.6% year over year from the previous forecast of a 0.9% increase just one month ago, according to the latest Global Port Tracker (GPT) report, published monthly by Hackett Associates and the National Retail Federation (NRF). The November GPT report forecasts a 6.1% increase in U.S. imports in December, up from a projected 0.2% increase in the previous report. This increase comes from the rush to bring merchandise into the country ahead of a possible strike in January by East and Gulf coast dockworkers and new tariffs proposed by President-elect Donald Trump. U.S. retailers in November and December plan to import 350,000 TEUs more than they had expected a month ago. GPT upgraded its January forecast for US imports to a 2.5% increase from last month’s forecast of a 0.8% gain and its February projection to a 9.3% year-over-year decline from the previous forecast of an 11.2% drop.
What’s happening at the ports and rails?:
You can find all the information on the below link where we cover port congestion, chassis issues and capacity lead times weekly at all U.S. and Canada Ports and rail heads on our website – click on the link below
CLICK HERE For Port & Rail Updates
Savannah: This past October was the third busiest October on record for GPA after 2021 and 2022, when more than half a million TEUs crossed the docks at the Port of Savannah – The Georgia Ports Authority handled 494,261 twenty-foot equivalent container units in October, an increase of more than 45,000 TEUs, up 10 percent. Our South Atlantic operation is ready for your containers – we have a drayage fleet of 12 trucks with service to and from Savannah, Charleston and Jacksonville ports as well as container yard space. We have a full service transload warehouse in Savannah and can handle your dangerous goods cargo and any last-minute urgent transloads and cross docks and we are currently operating with plenty of open capacity. Contact the team sav@portxlogistics.com
Seattle/Tacoma: The Tacoma port had the 3rd highest volume into the U.S. last week and could continue to increase as the labor woes continue at the BC Ports in Canada and the possibility of contract issues at the U.S. East and Gulf Coast ports. The Ports or Seattle and Tacoma are hot capacity spots for us – if you want to learn how shipping through the SEA/TAC ports can benefit your supply chain and if you are looking for an all-star drayage/transload warehouse team, our Seattle operation has plenty of drayage capacity with the addition of 11 new drivers and a huge amount of warehouse capabilities for ongoing transloading projects. Contact letsgetrolling@portxlogistics.com for capacity and great drayage and warehouse rates.
Did you know? Port X Logistics has strategically located assets and owner-operators across the U.S. and Canada, allowing us to service every port and rail ramp with efficiency and reliability – all while providing state of the art technology and a great customer experience. Wherever your shipment needs to go, we’re positioned to get it there. letsgetrolling@portxlogistics.com
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