[Freight Weekly] Longshoremen Union Halts Negotiations With USMX

💔East and Gulf Coast port strikes in the United States are back on the table as the longshoremen's union and USMX break off talks again on points like automation.

• In the latest chapter of very tumultuous contract negotiations, the International Longshoremen Association (ILA) reportedly broke off chats with port employers represented by the United States Maritime Alliance (USMX) regarding the master contract expiring in two months. The flashpoint is on the automation of ports.

• Harold J. Daggett, president of the ILA, said on Nov. 14, “Together, we’re standing up to USMX and the shipping lines, who are pushing automation and new technology that threaten our jobs and the livelihoods of working people.”

• A Nov. 13 press statement from USMX undercuts Daggett’s claims, “The USMX has been clear that we are not seeking technology that would eliminate jobs.

• ILA went out on strike for about three days in October, but that was shortlived due to the catastrophic Hurricanes Helene and Milton battering the Southeast and Gulf coasts and the agreement of both sides to resume talks to avert a port crisis.

• The October strike ended after both sides agreed to a tentative settlement on wage hikes. They also agreed on a deadline of January 15 to reach a master contract resolution or another strike is due. Cutting off negotiations could lead the parties in the master contract negotiations closer to a strike in the very near future.

• Now that we are post-election, President-elect Donald Trump could face his first crisis—a labor crisis and ongoing tumult between ILA and USMX. Trump told the ILA and Daggett that he would support the longshoremen union in negotiations.

• Trump said, via Bloomberg, “American workers should be able to negotiate for better wages, especially since the shipping companies are mostly foreign flag vessels.” It is worth noting that ILA didn’t endorse a candidate for the 2024 Presidential Election. Daggett has been characterized as shifting ILA right.

Bottom line: While a strike might not hit before the high-volume and high-value holiday season, the impact of an ILA strike if no deal with USMX is reached by Jan. 15 would be felt throughout the supply-value chain. However, retailers will continue backup planning.

MORE: “Dockworkers Dig In: ILA Breaks Off Talks with USMX…” - GCaptain

Find New Cargo & Logistics Partners with the FFS Load Board

This newsletter is brought to you by the FFS Load Board. TODAY, right now, shippers need quotes on the following loads:

🚢Sea bulk — vehicle motor, about 400 lbs: Michigan, USA, to Greece

🚢Container — 24 containers, 10,000 kgs of seaweed: Thailand to Malaysia

🚢Container — Refrigeration equipment, more: China to Barbados

🚚LTL — four pallets, 900 kgs: New Jersey to Florida, USA

📈 BY THE NUMBERS

⛽ Diesel: $3.521 / gal (⬇️from $3.536 last week) - EIA

✈️ Air Cargo Index (Sept. ‘24): 186.1 (⬆️from 179.1 in August ‘24) - FRED

🚢 Global Container Index: $3,564.20 on Nov. 14 - Freightos

📰OTHER NEWS IN FREIGHT📰

🎆Port of Long Beach has a record in October: The Port of Long Beach reports that it moved nearly 1 million containers in October. This is the strongest month in the port’s 113-long history, according to a statement published by the port authority on Nov. 14.

🚂Navajo Nation considering new freight rail line: In other domestic supply chain news, the Navajo Nation is considering a new freight rail line that would run through tribe trust lands in Arizona. Proponents say the freight line would boost economic activity.

🚜Senate Republicans concerned over Trump’s proposed tariffs: Select members of the U.S. Senate GOP have voiced concerns over President-elect Trump’s tariff plans. For example, GOP Sen. Mike Rounds of South Dakota said the tariffs could harm agriculture.

Check out Freight Weekly on LinkedIn. You can also check us out on X (formerly Twitter) for regular brief updates.