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US Port Strikes - Impact on shipping to USA
Yesterday a forum member asked a question regarding a surcharge on their quotation from a removal company that related to potential strike action, so I thought it would be useful to share the following information.
What is the strike? The dispute over contract negotiations between the International Longshoremen’s Association and United States Maritime Alliance means that around 14000 workers at East and Gulf State ports are threatening strike action. Negotiations started last March and in December the contract was temporarily extended whilst negotiations continue, but the pending strike still looms if they cannot work out an agreement. Significant pressure is being placed on President Obama to use his powers to avert a strike as the it will be significantly damaging to the US economy. So, how does this affect household goods shipments? Well the container shipping lines are likely to impose a strike surcharge (which has previously been around $1,000 for similar strikes on the west coast but could be more or less) at all ports on imports and exports as a result of diversions of cargo to other ports and congestion at those ports, at the moment this has been delayed until 6th February which is when the contract extension runs to and will be reviewed again nearer the time. This will be a cost that removal companies cannot include in a fixed price quote as it's only applicable IF the strike goes ahead, but it's certainly a risk that you need to be aware of as an additional cost to you, so make sure to keep in touch with your removal company for updates once you've got a shipping date in mind. |
Re: US Port Strikes - Impact on shipping to USA
Originally Posted by kirstyp
(Post 10483820)
Yesterday a forum member asked a question regarding a surcharge on their quotation from a removal company that related to potential strike action, so I thought it would be useful to share the following information.
What is the strike? The dispute over contract negotiations between the International Longshoremen’s Association and United States Maritime Alliance means that around 14000 workers at East and Gulf State ports are threatening strike action. Negotiations started last March and in December the contract was temporarily extended whilst negotiations continue, but the pending strike still looms if they cannot work out an agreement. Significant pressure is being placed on President Obama to use his powers to avert a strike as the it will be significantly damaging to the US economy. So, how does this affect household goods shipments? Well the container shipping lines are likely to impose a strike surcharge (which has previously been around $1,000 for similar strikes on the west coast but could be more or less) at all ports on imports and exports as a result of diversions of cargo to other ports and congestion at those ports, at the moment this has been delayed until 6th February which is when the contract extension runs to and will be reviewed again nearer the time. This will be a cost that removal companies cannot include in a fixed price quote as it's only applicable IF the strike goes ahead, but it's certainly a risk that you need to be aware of as an additional cost to you, so make sure to keep in touch with your removal company for updates once you've got a shipping date in mind. We are still waiting on a final agreement but have received the latest information from our US offices: The latest ILA-USMX contract extension expires at 11:59 p.m., Feb. 6. The union and employers have held a series of federally mediated bargaining sessions since agreeing to an extension last month that averted a threatened Dec. 30 strike. Last week’s negotiations between the ILA and the New York Shipping Association on a supplemental local contract reportedly closed on a sour note Friday after ILA President Harold Daggett reiterated his objection to the NYSA’s proposed changes in work rules. Both sides have said agreement on a Maine-to-Texas master contract hinges on settlement of supplemental local contracts led by the one covering New York-New Jersey. This week’s ILA-USMX meetings will be crucial in determining whether East and Gulf Coast ports are hit by their first coastwide shutdown since 1977. The latest extension followed tentative agreement on carrier-paid container royalties that provide annual cash payouts to ILA members. Negotiators had agreed earlier on issues including automation and union jurisdiction over chassis repairs. If negotiators can’t agree on a contract or a third extension by Feb. 6, the ILA could strike, or a management could shut the ports by locking out union workers. Employers discussed a lockout before they and the union agreed to the current contract extension last month. More info at: http://www.bournes-uts.co.uk/news/en...-shipping.aspx |
Re: US Port Strikes - Impact on shipping to USA
Originally Posted by kirstyp
(Post 10516575)
UPDATE:
We are still waiting on a final agreement but have received the latest information from our US offices: The latest ILA-USMX contract extension expires at 11:59 p.m., Feb. 6. The union and employers have held a series of federally mediated bargaining sessions since agreeing to an extension last month that averted a threatened Dec. 30 strike. Last week’s negotiations between the ILA and the New York Shipping Association on a supplemental local contract reportedly closed on a sour note Friday after ILA President Harold Daggett reiterated his objection to the NYSA’s proposed changes in work rules. Both sides have said agreement on a Maine-to-Texas master contract hinges on settlement of supplemental local contracts led by the one covering New York-New Jersey. This week’s ILA-USMX meetings will be crucial in determining whether East and Gulf Coast ports are hit by their first coastwide shutdown since 1977. The latest extension followed tentative agreement on carrier-paid container royalties that provide annual cash payouts to ILA members. Negotiators had agreed earlier on issues including automation and union jurisdiction over chassis repairs. If negotiators can’t agree on a contract or a third extension by Feb. 6, the ILA could strike, or a management could shut the ports by locking out union workers. Employers discussed a lockout before they and the union agreed to the current contract extension last month. More info at: http://www.bournes-uts.co.uk/news/en...-shipping.aspx Great news.... we have received the following information that the US port strikes threatened by the International Longshoremen's Association have been averted as a tentative 6 year agreement has been reached. The ILA and United States Maritime Alliance reached tentative agreement on a six-year coastwide master contract late Friday night. “The tentative agreement is subject to the ratification procedures of both parties and, as well, to agreements being achieved in a number of local union negotiations. Those local negotiations are ongoing and will continue without interruption to any port operation,” FMCS Director George H. Cohen said in a statement. |
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