ILA & USMX Update

The world's largest steamship line, Maersk, cautioned the trade yesterday that capacity through the US West Coast will be in short supply if the ILA strikes or is locked out at East & Gulf coast ports. The company's CEO said that cargo owners who divert cargo to the West Coast would find, for example, that Maersk's current space utilization to the West Coast is already over 90%. They could take a little more cargo, but they could not handle a major overflow.

Also in the news yesterday were the American Apparel and Footwear Association and several other industry groups that wrote to the ILA and the USMX urging them to resume negotiations toward finalizing a new contract. The groups said their members are concerned about a work stoppage or slowdowns because their products require on-time arrival to meet customer demands and avoid costly chargebacks from retailers. The groups warned that a work stoppage "would have dire consequences for the already-struggling U.S. economy and the consumer population as a whole."

For more information regarding this matter, please contact your Liberty Account Representative.