Danger of port strikes in North America worries freight forwarders

The threat of port strikes across North America continues to create nervousness in already strained supply chains.

The Canadian Industry and Trade Bureau (CIRB) ruled over the weekend that a planned 72-hour strike at DP World in Canada violated the country’s labour laws. This narrowly prevented a three-day work stoppage this week.

The ILWU Ship & Dock Foremen Local 514 had given its employer a formal notice on Friday of actions to begin on Monday, which set up a hectic weekend of negotiations and discussions to avoid a strike.

ILWU 514, which represents nearly 600 workers, has been negotiating since November 2022, demanding, among other things, wage increases and retirement benefits.

In July last year, dockworkers in British Columbia went on strike over issues such as wages, benefits and training.

The shipping companies are still grappling with the prospect of Canadian rail workers going on strike this month. The Teamsters – who represent conductors, engineers and switchmen at both CN Rail and Canadian Pacific Kansas City Limited – are preparing strike action for later this month.

South of the border, ports across the United States also had to contend with numerous industrial action.

Last June, agreement was finally reached on a six-year labor contract at 29 ports on the U.S. West Coast, ending 13 grueling months of deadlocked negotiations, strikes and cargo diversion to other locations.

While things remain quiet on the US West Coast, problems are emerging elsewhere.

Dozens of industry associations across the U.S. last week called on the White House to help restart stalled talks between dockworkers and port operators on the East and Gulf Coasts.

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

“With capacity already exhausted on the longer routes around Africa, additional delays and backlogs caused by an ILA strike or, to a lesser extent, the looming Canadian rail strike that could potentially take place in July, would also increase or re-increase pressure on ocean freight rates,” commented Judah Levine, head of research at Freightos, a container booking platform.