Tuesday, July 29, 2014
06-March-2013 Minimize

Global Update: Dockworker and Port Strikes
 

 

 

 

Global Update: Dockworker and Port Strikes

Doe & Ingalls is providing Rx-360 an update on the dockworker strikes in US, India, and Brazil.

United States:  The automatic budget reduction mandated by sequestration could have an impact to US ports as custom agents are possibly furloughed. Please be aware of the situation, and be prepared for delays should this happen.

Below are specific updates on the negotiations between the Longshoreman at the East/Gulf Coast ports  as well as clerical workers at the Los Angeles/Long Beach ports and the potential impact to imports and exports.

East/Gulf Coast: In October, the East/Gulf Coast Longshoremen’s contract expired with negotiations taking place since. In February, a tentative deal was reached between port operators and the longshoremen on a new six year contract; however, local groups have until March 8th to supplement a coast wide mater agreement. The agreements are subject to ratification, and until ratified, there continues to be the possibility of impact to the supply chain.

Los Angeles/Long Beach: In December, an eight day clerical workers strike shut down the Los Angeles and Long Beach ports.  After much negotiation, the parties reached a tentative deal that would end the strike. After the tentative agreement was initially rejected the on February 8th, the clerical workers voted again to ratify the agreement on February 21st. The agreement will run through June 2016.  No further impact is expected.
 
India: The ports of Nhava Sheva, Mumbai, Chennai, Visakhapatnam, Cochin and Tuticorin took part in a 48 hour nationwide strike to protest rising inflation, social security, and trade union rights. At this point, importers from Indian ports should be closely monitoring the situation and prepare for delays of materials that were shipped after February 20th.

Brazil: Grain dock workers staged a six hour grain strike to protest the government’s plan to overhaul regulations and privatize 158 ports starting later this year. The six hour strike was designed as an example of what could happen should the contract expire on March 15th. As a result of the strike, importers of Brazil’s perishable corn, sugar, and soybeans have started sourcing commodities from other countries such as the United States. These commodities are the basic building blocks to many ingredients used in cell culture media and could impact availability and pricing on these materials.

For more information on the commodities impacted, go to
www.doeingalls.com/blog/brazil-dock-disruptions-impact-on-specialty-chemicals
.

For more information on this topic, contact Charlotte Hicks at cbhicks@doeingalls.com.
 
 

  

06-March-2013 Update Minimize

 

Contract Negotiations Continue to Advance with the US East Cost Longshoreman's Union

Please note below the latest pertaining to the US Maritime Alliance(USMX) and East/Gulf Coast International Longshoremen Association(ILA) contract negotiation update:
  •  ILA and USMX set March 8th as deadline for negotiation of local contracts that supplement a coast wide master agreement covering dockworkers at East and Gulf Coast ports
  •  This week’s bargaining on local contract for the Port of New York and New Jersey will determine whether East and Gulf Coast ports face the renewed threat of an ILA strike
  • Core team mitigation plan is in place to avoid impact to supply

 

 

  

December 2012 Update - Strike Set for December 30th Minimize

 

Longshoremen Strike Set to Begin on December 30th Could Impact US Imports and Exports of Raw Materials and Critical Medicines
 

If the International Longshoremen’s Assn. (ILA) does strike ­­— and observers are expecting it to — ports from Maine to Texas would have to close, says big insurance broker Marsh in its “U.S. Port Strikes: What’s at Stake and How to Manage Your Risk.” Important affected ports would include those in New Orleans, Houston, New York/New Jersey, Baltimore, Savannah, Norfolk, and Charleston.
The most important thing to do is add new shipping ports. That may be challenging, though, because major West Coast ports already have strained capacities as a result of recent strikes in Los Angeles and Long Beach, as well as increased Asian trade.

Gary Lynch, global leader of Marsh’s supply-chain risk-management group, tells CFO that Risk managers also might recommend that their company consider:
  • Alternative buying strategies — for example, buy locally or have supplies trucked in instead of shipped by sea.
  • Stockpiling inventory before the strike date.
  • Moving subassembly into target sales markets.
  • Emphasizing product offerings that rely less on shipping-dependent materials.

Particularly at risk are pharmaceutical companies. Drugs are often shipped in drumlike containers and would be especially vulnerable to changes in temperature and humidity as they sit unhandled in the port. “We’re not talking about weeks and months of flexibility in the supply chain,” Lynch says. Even if the strike were settled almost immediately, before product was ruined, it would be a huge challenge to identify and segregate lifesaving drugs for priority shipping.

 

  

Possible Longshoremen Strike and that Would Impact US Imports and Exports of Raw Materials and Critical Medicines Minimize

Possible Longshoremen Strike and that Would Impact
US Imports and Exports of Raw Materials and Critical Medicines 

Doe & Ingalls reported to Rx360 that on August 22nd, contract negotiations broke down between the International Longshoremen’s Association and East and Gulf Coast waterfront employers after the two sides could not agree on key issues. 

The contract expires on September 30th, and as of today, no new discussions have been scheduled. Should a strike occur on October 1st, theoretically, it could impact docks on the East and Gulf Coasts during the busiest part of the shipping season. This means that any materials imported or exported by sea to East or Gulf Coast ports could be impacted.

While some unions in New York and New Jersey have authorized a strike if an agreement is not reached, there is still time for discussions before the September 30th deadline. If an agreement isn’t reached, the federal government could step in with an injunction that could force workers back to docks while negotiators are ordered to enter a “cooling off period” of about three months.

In the meantime, Rx360 recommends that subscribers prepare contingency plans for their critical materials that are imported/exported should negotiations take a turn for the worse. If you have any questions about the information contained in this alert, please feel free to contact Charlotte Hicks at cbhicks@doeingalls.com.

 

  

25-January-2013 Update Minimize

Contract Negotiations Continue to Advance with the US East Cost Longshoreman's Union

Please note below the latest pertaining to the US Maritime Alliance(USMX) and East/Gulf Coast International Longshoremen Association(ILA) contract negotiation update:
Please note below the latest pertaining to the US Maritime Alliance(USMX) and East/Gulf Coast International Longshoremen Association(ILA) contract negotiation update:
  • The ILA and employers are trying to work out a deal before their latest contract extension expires Feb. 6
  • Both parties have agreed that the negotiations will continue under the auspices of the Federal Mediation and Conciliation Service (FMCS)
  • Negotiations talks resume last Tuesday on New York-New Jersey port issues that may pose the toughest challenge to settlement of an East and Gulf Coast dockworker contract
  • Negotiations on a coast wide master contract between the ILA and USMX are expected to resume the week of 1/28
  

21-January-2013 Update Minimize

Contract Negotiations Take a Positive Term with the US East Cost Longshoreman's Union

Please note below the latest pertaining to the US Maritime Alliance(USMX) and East/Gulf Coast International Longshoremen Association(ILA) contract negotiation update:
  • The ILA and employers are trying to work out a deal before their latest contract extension expires Feb. 6. The contract originally was set to expire last Sept. 30 but has been extended twice
  • A federal mediator said three days of bargaining this week on an East and Gulf Coast dockworker contract yielded progress and that the ILA and employers have agreed to continue negotiations
  • Both parties have agreed that the negotiations will continue under the auspices of the Federal Mediation and Conciliation Service (FMCS)
  • No dates or locations were released for the next negotiations, but bargaining is expected to resume next week on local contracts between the ILA and the New York Shipping Association and other local employer
  • Negotiations on a coast wide master contract between the ILA and USMX are expected to resume the week of 1/28

 

  

20-September-2012 Update Minimize

Update: 20-September-2012:

This article concerning the possible Longshoremen strike states that ship operators are preparing shippers for "congestion surcharges" of around $1000/40 foot container… If the strike occurs, it would not only add delays but additional costs to our raw materials coming from off shore. To read the entire article go to:

http://www.netamlines.com/2012/09/carriers-file-ila-strike-surcharge-notices/

  

 

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