Potential Strikes Could Affect US Ports
Last week's sudden breakdown in negotiation talks between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) over new contracts for the US East and Gulf Coast labor contracts now pose the threat of a potential strike by the ILA after the expiration of the current contract on September 30th. The current breakdown in negotiations revolves around outstanding issues over productivity and efficiency improvements requested by USMX, particularly in the high-cost Port of New York and New Jersey.
Such an event could very well could rival the labor lockout on the West Coast in 2002. In 2011 the East and Gulf Ports represented 48.5% of the total container traffic passing through US Ports. A port shutdown for the East and Gulf Coasts could be disastrous for the container shipping industry.
Additionally the strike comes at a sensitive time, five weeks before the US presidential elections are due to take place on November 6th. This may have a significant effect on whether the Taft-Hartley Act injunction would be put so use. The Taft-Hartley Act, if enacted, puts union workers back to work for an 80-day cooling off period.
The current threat of strike is starting to have an impact on space and rates. Diversion of cargo to West Coast port with Mini-land bridge to ramp destinations will result in significant space restrictions as well as increased rates. Securing space in Asia will become a significant problem, so it is recommended that bookings be placed far in advance to secure space.
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Hurricane Isaac Makes Landfall
Hurricane Isaac is making landfall along the coast of Louisiana tonight and has closed the port of New Orleans. So far the surrounding ports of Mobile and Houston are not affected, but delays can be expected as vessels await the Port of New Orleans to open and others take extra time to circumvent the storm.
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Dual Typhoons Affecting Asia
Two tropical cyclones in the pacific, Tembin and Bolaven are approaching the northern part of China. Cyclone Bolaven has already hit Korea and Tembin further south has already affected Taiwan. Both will be making landfall in northern China and will affect ocean freight from Tianjin, Qingdao, Shanghai and Ningbo for the next few days.
Airfreight from Korea will be affected by cyclone Bolaven on Aug 29th and 30th. Ocean freight to/from Korea will also be affected.
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