It has gotten to a boiling point on whether or not the national union for dockworkers, International Longshoremen’s Association, will manage to secure a new contract with the port authorities. The potential work stoppage at key ports located on the East Coast and the Gulf Coast can bring about a severe crisis in the supply chain with several implications on the economy.
Preparing for Contingencies: The Measures Put In Place By The Port of New York and New Jersey
Kiritsuimo lipikula who is a dock planner at New York/New Jersey, is organizing containerized export cargo in efforts aimed towards cargo strike.
The port director, Beth Rooney has confirmed that indeed the port is starting to ‘declutter’ its operations so as to avoid container congestion at the port. The preparation of preparing for the work stoppage which is due on the first of October has seen the port officials having control over the importation and movement of cargo in the port.
Ocean carriers have raised eyebrows and declared that they will not allow export shipments intended for the East Coast originating from the Midwest. This is meant to reduce chaos. Should there be a strike, either ships shall be ordered to some designated anchorage areas or they will ‘slowly steam’ to the North America in preparation. Domestic coastal shipping will be resumed, and the coast guard will control the resumption of the operations.
The Dangers of the Striker’s Extended Action
The potential impact of a prolonged strike is significant. Five of the ten largest ports in the nation are found on the East Coast or Gulf Coast, such ports account for between 43% and 49% of total U.S. imports.
Any work stoppage, however small, would compromise the movement of goods and give rise to congestion as more cargo is transferred to the West along the Coast where different union members work at the Port. By the time the longshoremen’s unions like ILU signed a return to work order there will be a huge congestion of vessels at the ports as it will take 4-6 days to offload for every day that the vessel projection of working day is postponed.
This supply chain crisis would have very dire ripple effects on the economy as those that were experienced due to the COVID-19 pandemic. The redistribution of shortage and the increase of competition on the market would bear down upon all businesses and consumers.
Conclusion
One of the major threats to the future of the American economy is the impending labor stand-off with the port workers on the East and Gulf Coasts marine terminals and related facilities. There is great willingness on both presents to prevent a blockade but the financial resources are also too much therefore these talks are essential. The Alternate including the entire manipulation of supply chain stand for the fact that workers at ports remain essential in order to avoid what has the potential to write a deep line over the country’s supply of goods. As time is running out, the outcome of these negotiations will be the center of everyone’s concern in an attempt to save the interests of the employees, the companies and the customers.
