Threatened strike could close East Coast and Gulf Coast Ports

[BlackDiamond]

https://www.nbcnews.com/business/bu...threaten-ports-east-coast-ila-usmx-rcna171914

A major strike is on the horizon for thousands of maritime workers, posing a threat to East Coast ports responsible for billions of dollars of goods.

"The International Longshoremen’s Association (ILA), the largest union of maritime workers in North America, has vocalized plans to go on strike at all of its Atlantic and Gulf Coast ports Oct. 1 if a new contract agreement can’t be reached with the United States Maritime Alliance (USMX). The union is arguing for better wages and continued protections against automation and new technology in its terminals."

If this happens, would shipping companies be able to divert to West Coast ports then ship via rail? I imagine this would not be easy plus the ports and rail are already heavily used.

 

[Palmland]

If this happens, would shipping companies be able to divert to West Coast ports then ship via rail? I imagine this would not be easy plus the ports and rail are already heavily used.

I had read that this is already happening. Also CSX and NS have said they expect minimal financial impact. Containers that would now go to the east coast cities from the west coast would give them longer hauls to offset loss of east coast port traffic to the Midwest.

 

[BlackDiamond]

Well the strike has happened. The 2 sides could not agree on a wage increase plus there are differences over policy towards automation.

Initially there might not be much of an effect as companies stocked up anticipating a walkout, but if it goes on for a while that could be a problem especially with Christmas holiday sale items. Also perishables like bananas might be affected sooner. Some items could be brought in to West coast ports then shipped by rail but that cannot make up the volume that comes through the eastern and gulf coast ports.

The President has already said he would not invoke Taft Hartley to force the ILA members back to work. So this might go on for a while.