Fearing a port strike, US industry calls on Biden to resume labor talks

Dozens of industry associations in the US called on the White House to help restart stalled talks between dockworkers and port operators on the East and Gulf coasts, saying a strike was the last thing the economy needed given already strained global supply chains.

Earlier this month, collective bargaining between the International Longshoremen’s Association and the US Maritime Alliance collapsed. The current contract, which covers about 45,000 longshoremen at facilities including six of the 10 busiest US ports, expires on September 30.

“We urge the administration to immediately work with both parties to resume contract negotiations and ensure there are no disruptions to port operations and cargo traffic,” said a letter to President Joe Biden on Tuesday from more than 150 groups, including the U.S. Chamber of Commerce, the National Association of Manufacturers and the National Retail Federation.

Global maritime trade is already under pressure due to Houthi attacks on ships in the Red Sea. Container ships are forced to take the longer route around South Africa, stretching capacity, lengthening lead times for new orders and driving up freight rates.

“Given all of these existing challenges, the last thing supply chains, businesses and employees – all of whom rely on the movement of goods (import and export) through our East and Gulf Coast ports – need is a strike or other disruption due to ongoing collective bargaining negotiations,” the letter said.

Even the threat of a port strike could be disruptive as shippers look for alternative routes for their imports and exports, the letter said, referring to cargo that was diverted from West Coast ports during an extended round of contract negotiations through 2023 that ended with the announcement of a six-year deal in September.

“We are seeing a shift back to West Coast gateways where long-term contracts are in place, especially now as we enter the busy peak shipping season,” the letter said.