LOS ANGELES: US retailers’ early back-to-school, Halloween and Christmas holiday imports may lessen cargo delays and financial damage should workers at vital seaports such as New York and Houston strike in October, says a trade economist.
The International Longshoremen’s Association (ILA) represents 45,000 dockworkers at three dozen US ports from Maine to Texas and handle half of the nation’s ocean trade. The ILA and employers represented by United States Maritime Alliance (USMX) are at odds over issues ranging from automation to wages.
“Retailers are concerned by the possibility of a strike at ports on the East and Gulf coasts because contract talks have stalled,” said Jonathan Gold, vice-president of supply chain and customs policy at the National Retail Federation.
Those seaports handle roughly half of US container imports, and any strike or slowdowns would hit ahead of the US presidential election.
The ILA said it has scheduled a meeting to prepare for a potential strike if a new agreement is not in place by Sept 30.
USMX said in a statement it is ready to return to bargaining.
Companies such as Walmart, Target, Home Depot and Amazon.com, started importing laptops, Halloween costumes and toys during the spring. Typically, such holiday-related imports land at US ports between August and October.
In July, US container freight imports climbed 14% year-over-year, according to S&P Global Market Intelligence. That marked the third-highest monthly level for US container imports, according to supply-chain-software provider Descartes Systems Group. — Reuters
