(Reuters) -Some 45,000 union workers walked off the job at seaports on the U.S. East and Gulf Coasts on Oct. 1, cutting off vital trade arteries just weeks ahead of the nation's presidential election.
The International Longshoremen's Association (ILA) union, which represents dockworkers across 36 ports on the U.S. East Coast and the Gulf of Mexico, remains deadlocked with the United States Maritime Alliance (USMX) employer group on wage issues.
The stoppage is the first coast-wide ILA strike since 1977 and halts the flow of about half the nation's ocean shipping. A two-week strike could mean that ports would not return to normal operations until 2025, according to Sea-Intelligence, a Copenhagen-based shipping advisory firm.
Here is what global companies and stakeholders have said regarding a potential strike:
Costco (NASDAQ:COST) U.S. retailer Costco's contingency plans
Wholesale include pre-shipping some products to get in
holiday goods early and preparing to use
different ports, Costco's CEO Ron Vachris
said last week.
Maersk The Danish shipping and logistics giant said
on Sept. 30 a longer dispute may exacerbate
disruptions, affecting import and export
activities, container availability, and
overall operational efficiency.
The company has said it will introduce a port
disruption surcharge on all cargo moving to
and from the U.S. East Coast and Gulf Coast
terminals from Oct. 21 ranging from $1,500 to
$3,780 a container.
C.H. Robinson "We have been working on contingency plans
with customers for months, helping them
import freight early and diversify freight to
other ports," Mia Ginter, director of North
American shipping, told Reuters. A
significant volume shift to the West Coast
could challenge rail services, requiring more
use of truck and transload services, Ginter
added.
Maher Maher and Maersk's APM, which are members of
Terminals and the employer negotiating group (USMX), said
APM Terminals they were keeping their terminals at the Port
of New York and New Jersey open for two
additional hours to clear cargo before the
potential strike.
Garden City The Garden City Terminal at the Port of
Terminal and Savannah and the Norfolk International
Norfolk Terminal at the Port of Virginia have also
International extended their gate hours for the weekend
Terminal before Sept. 30 to clear cargo.
Hapag-Lloyd The shipping giant has said it is closely
monitoring the strike situation and will keep
customers involved as developments unfold.
Andreas Stihl The German chainsaw manufacturer Andreas
AG & Co Stihl AG & Co told Reuters it is also
developing contingency plans to keep exports
flowing from its factory near the Port of
Virginia, but didn't elaborate. Stihl's U.S.
plant ships products to over 80 countries.
Designer Ronnie Robinson, chief supply chain officer
Brands at DSW parent company Designer Brands (NYSE:DBI), said
the company has shifted half of its usual
imports through the East Coast to the West
Coast. Robinson added that his company cannot
risk late deliveries to clients like Macy's (NYSE:M),
Nordstrom (NYSE:JWN), and Dillard's (NYSE:DDS) department stores,
even if it means paying more for shipments.
National NAM CEO Jay Timmons said a strike would throw
Association of manufacturing supply chains throughout the
Manufacturers U.S. into disarray. "Billions of dollars of
goods - from food to vehicles to electronics
- rely on access to the East and Gulf Coast
ports," Timmons said on Monday.
Inter IKEA, "We are closely monitoring the situation and
which makes hope for an agreement between the parties as
IKEA furniture soon as possible. It is too early to comment
on any possible constraints the strike might
have on our supply chain."
McCormick (NYSE:MKC) & The company said it co-ordinated mitigation
Company plans with domestic suppliers with inbound
supply coming from outside U.S.
National The retailer group urges U.S. President Joe
Retail Biden to use all available authority, tools
Federation including Taft-Hartley act, to immediately
restore operations at all impacted container
ports, get the parties back to the
negotiating table and ensure there are no
further disruptions
BNSF Railway The railroad said it was carefully monitoring
the situation with the East and Gulf Coast
ports and was fully prepared for any shifts
in demand for rail service, adding that its
local teams continue to work with its
terminal operators on the specific needs to
meet the demands of their facilities.
Walmart (NYSE:WMT) The retailer said it has prepared for
unforeseen disruptions in its supply chain
and maintains additional sources of supply to
ensure it has key products available for its
customers when and how they want them.
U.S. The department said it does not expect
Department of shortages anytime in the near future for most
Agriculture items and adds it is keeping an eye on
downstream impacts in west, and will continue
to monitor and work with industry to respond
to potential impacts.
Merit Medical The medical device maker's CEO Fred
Systems Lampropoulos said the company anticipated the
strike and switched a portion of its shipment
to air transport before July.
CSX (NASDAQ:CSX) The railroad said it has been flexible,
adding service in collaboration with western
partners to provide customers with
alternative options to West Coast ports.
Ahold Delhaize The owner of the Food Lion and Hannaford
grocery chains said it has been preparing for
the situation and remains in close dialogue
with suppliers, including local ones, to
ensure stores are stocked. It expects minimal
impact on its supply chain for now.