[Freight Weekly] ILA Contract Negotiations Halted With USMX

💸Dockworkers pressing for wage increases tied to corporate profits; contract talks halted in the latest labor dispute💸

In the latest labor dispute impacting freight, the International Longshoremen’s Association (ILA) announced that it has halted negotiations with ocean carriers and port operators. Now, the longshoremen want wage increases. What to know:

• ILA master contract negotiations with members of the United States Maritime Alliance (USMX) have officially stalled, especially with an ongoing dispute between companies like APM Terminals and Maersk.

• The USMX coalition represents ocean carriers, maritime employers, and ports on the East and Gulf Coasts of the United States.

• If ILA and USMX cannot reach an agreement, work stoppages similar to what we saw on the Pacific Coast in 2023 are expected. ILA represents about 85,000 longshoremen and employees for these companies.

• One point of contention is an automated gate that streamlines the flow of truck traffic at the Port of Mobile in Alabama and at other ports.

• The union says this is costing ILA jobs and giving APM and Maersk, the companies using these automated gate systems, big profits.

• “The ILA will demand our ILA longshore workers get big boosts in their wages,” said Harold J. Daggett, ILA president, in a press statement.

• “We will continue to engage with all stakeholders, including the ILA, to address their concerns,” a Maersk representative told CNBC online.

Bottom line: A work stoppage could harm the regional and national economies along the East and Gulf U.S. coasts. ILA’s master contract with USMX expires on Sept 30. Daggett said a strike could start as soon as Oct 1 if there is no deal.

🤬U.S. Defense Intelligence Agency reports a major drop in international trade volumes through the Red Sea amid Houthi militant attacks🤬

A newly released report by the Defense Intelligence Agency indicates that trade volumes through the Red Sea have dropped significantly due to the Houthi rebels.

• Houthi attacks led to a 90% drop in container shipping through the Red Sea since December 2023, affecting 10-15% of global maritime trade.

• The Houthi attacks have had widespread consequences, impacting at least 65 countries and 29 different shipping companies.

• Humanitarian relief for Sudan and Yemen is delayed and more expensive due to longer routes around Africa.

Bottom line: The agency’s report is part of an ongoing accounting of the harm the Iranian-backed Houthi militants have caused to international trade through the critical Red Sea-Suez Canal corridor. As a reminder, the Houthi militants are molesting international trade with their boosted military prowess as a show of support for Hamas in the invasion instigated by the Israel Defense Forces.

READ THE REPORT: “Yemen: Houthi Attacks Placing Pressure on International Trade”

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📰  WHAT ELSE IS GOING ON IN FREIGHT

😎Inland Port of Nevada is now open, taking cargo: The new inland Port of Nevada, offering intermodal services as a forwarding operation, is now open. Minutes outside Reno, the port started taking cargo from the Port of Oakland.

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