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Your weekly All-Ways round-up of Supply Chain news.
 The ongoing dispute between port employers, represented by the United States Maritime Alliance (USMX), and the International Longshoremen's Association (ILA) intensified this week.
The conflict centers around contract negotiations for 45,000 workers at East and Gulf Coast ports.
A media blackout, agreed upon after a three-day strike in October, was broken when the ILA accused employers of trying to introduce automation language into the new master contract.
The ILA renewed its public campaign by reposting a provocative image on Facebook, signaling their readiness for a fight. Dennis Daggett, ILA Executive Vice President, voiced concerns over the push for semiautomated rail-mounted container cranes (RMGs), claiming they could jeopardize jobs and national security. He argued that such technology, despite being 95% automated, poses risks to longshore workers and their livelihoods, with productivity studies showing workers outperforming automated systems.
In response, USMX emphasized the importance of modernization and new technology for improving port operations and ensuring the industry's future. They insisted that adopting technology like RMGs would not eliminate jobs, but rather enhance efficiency and create new opportunities. USMX pointed out that some ports with automation have seen increased cargo volume and job growth, countering the ILA’s concerns.
The dispute remains unresolved, with both sides continuing to hold firm on their positions.  Ocean freight rates are being supported by the ongoing threats of tariff hikes and potential port strikes, even during a period that typically sees a post-peak rate decline.
Concerns over a possible strike by the International Longshoremen's Association (ILA) after the coastwise master contract expires in mid-January, along with expectations of tariff hikes in the new year, have kept Transpacific rates elevated.
Some carriers have introduced general rate increases (GRIs) in early December, trying to boost prices further. Despite these increases, some analysts suggest that early December rates may not be sustainable due to prior inventory frontloading, which means there may still be months before tariffs impact freight costs.
Mediterranean rates have seen a further climb due to increased demand ahead of the Lunar New Year.
The rise in Mediterranean rates may be driven by capacity management tactics like voyage cancellations and early pre-Lunar New Year demand. Shippers are also facing longer lead times due to ongoing diversions from the Red Sea, making it crucial for Mediterranean-bound shipments to be completed before the holiday shutdown in China.
In late November, labor groups at India's 12 public ports voted for an indefinite walkout starting December 17.
The strike is driven by unresolved issues over wage increases retroactive to 2022 and pension benefits for retirees. The unions are demanding government approval of employment conditions agreed upon two months ago.
Trade union leaders warn that workers are determined to enforce the strike if their demands are not met. They are urging the government to intervene before the deadline to prevent port disruptions.
Analysts suggest that government delays in finalizing the wage deal are due to concerns over the financial impact on public ports, which are already facing revenue pressures from competition with private operators like the Adani Group.
Despite these tensions, some industry observers believe the strike may be avoided if the government implements the agreed-upon terms soon.
While major ports like Nhava Sheva are mostly privatized and see minimal union activity, labor groups still exert influence at several East Coast ports, such as Chennai, Kolkata, and Visakhapatnam, which are important for feeder services and intra-Asia trade. |
