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US dockworkers deal - supply chain Armageddon averted, for now

Warnings of severe supply chain disruption dissipated in the blink of an eye as the US East Coast dockworkers strike reached temporary resolution after just three days.

Nick Savvides, Europe correspondent

October 4, 2024

2 Min Read
Port cranes at night
Crediit: Minka2507-Pixabay

With the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) reaching tentative agreement on wages the strike at East and Gulf coast ports was called off. The two sides now have until 15 January next year to hammer out an agreement on other issues including the crucial area of automation.

Supply chain Armageddon on the East Coast has been delayed, for now at least, and with the strike lasting just three-days little impact will be felt.

Xeneta analyst Peter Sand, said he thought the backlog would be cleared within three weeks, and there has been little impact on rates, “We have seen no elevated rates [on the Atlantic] but there will be no fast drop-in rates either,” said Sand.

Rather than being Armageddon supply chain disruption effectively turned to Hollywood farce, akin to the comedian trying to lean against a car that has moved on, but Xeneta cautioned, the shift is just down the road a little, delaying the final show-down rather than eradicating it.

“We will be watching the pace of work at the ports in the next 100 days,” said Sand, though he added, “it is possible that the new president could invoke the Taft-Hartley rule which will give an 80-day cooling off period, and will allow more time for an agreement to be made before further strikes.”

Related:US port strike ends – unions and employers reach tentative agreement

For Sand the likelihood of an agreement being reached on automation within the given timeframe is slim, given that the two parties have failed to reach a deal on the issues around automation in the last year.

Moreover, Sand argues, “The most powerful tool in the ILA’s toolbox is the go-slow or work to rule,” that is not striking, but making sure that all rules are followed to the letter slowing the pace of work to unacceptable levels.

According to Xeneta the current backlog in freight should take around three weeks to clear about 44 ships waiting at anchor, though this will be slowed with around 120 ships arriving as the backlog is processed.

“New tonnage could plug the gaps in USEC services if schedules are disrupted,” explained Sand, adding, “At the moment the Pacific has seen the biggest deployment of new tonnage, but I expect new ships to be spread around to the regions where they are most needed.”

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About the Author

Nick Savvides

Europe correspondent

Experienced journalist working online, in monthly magazines and daily news coverage. Nick Savvides began his journalistic career working as a freelance from his flat in central London, and has since worked in Athens, while also writing for some major publications including The Observer, The European, Daily Express and Thomson Reuters. 

Most recently Nick joined The Loadstar as the publication’s news editor to develop the profile of the publication, increase its readership and to build a team that will market, sell and report on supply chain issues and container shipping news. 

This was a similar brief to his time at ci-online, the online publication for Containerisation International and Container News. During his time at ci-online Nich developed a team of freelancers and full-time employees increasing its readership substantially. He then moved to International Freighting Weekly, a sister publication, IFW also focused on container shipping, rail and trucking and ports. Both publications were published by Informa. 

Following his spell at Informa Nick joined Reed’s chemical reporting team, ICIS, as the chemical tanker reporter. While at ICIS he also reported on the chemical industry and spent some time on the oil & gas desk. 

Nick has also worked for a time at Lloyd’s Register, which has an energy division, and his role was writing their technical magazine, before again becoming a journalist at The Naval Architect for the Royal Institution of Naval Architects. After eight successful years at RINA, he joined Fairplay, which published a fortnightly magazine and daily news on the website.

Nick's time at Fairplay saw him win the Seahorse Club Journalist of the Year and Feature Writer of the Year 2018 awards.

After Fairplay closed, Nick joined an online US start-up called FreightWaves. 

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