Ongoing US labour talks create uncertainty
The Federal Mediation and Conciliation Service (FMCS), involved in the ongoing labour dispute between the International Longshoremen Association (ILA) and the US Maritime Alliance (USMX), says that a tentative agreement has been reached, but negotiations are still ongoing.
Previous talks had been given an extension of up until 6 February to reach an agreement over the current master labour contract and the container royalty payments issue which has been dragging on since last summer.
This respite meant that port operations at the USMX 14 ports along the US East and West Coast could continue uninterrupted by strikes until that date had passed. But now post-deadline, fears over more strikes taking place are once again spreading through the supply chain.
Global logistics firm, Bellville Rodair, has expressed concerns that because of ongoing negotiations, everyone affected in the supply chain continue to find themselves in a state of limbo.
More strike action means port congestion and additional surcharges. The severity of the strike could be felt country wide at a time when the US economy is already under great pressure, says Waldo Remijn, regional manager, Bellville Rodair International (BRI) USA.
He added: “We will of course try to find alternative routings for cargo that absolutely needs to move out before certain dates, although capacity at alternative ports will be limited as well. In the event of a strike, we expect such surcharges to quickly extend to West Coast, Canadian and Mexican ports as well.”
Meanwhile, all parties in the ongoing negotiations say that they are satisfied with talks thus far.
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