The International Longshoremen's Association (ILA) and the U.S. Maritime Alliance, representing many ports on the U.S. East Coast, are currently stalled in contract negotiations. ILA's current contract expires September 30th and if a new agreement is not met, 45,000 members of the ILA may go on strike this coming Monday at noon.
"It is a very real situation and although we are trying to predict the future, it is just very uncertain right now," says Maria Bermudez of Advance Customs Brokers in Miami. Without an agreement on a new labor contract, operations at more than 30 ports will cease, including key produce ports such as Miami, Philadelphia, Houston, and Baltimore.
Peru/Ecuador
Shipping lines arriving in the big terminals, like Maersk and MSC, will be affected heavily. On a positive note, some terminals are not managed by ILA, and they will continue to receive shipments. In addition, Seaboard Marine may not be as impacted. "That would be a savior to Peru's exports as the country predominantly ships by reefer cargo," said Advance Customs Brokers' Pat Compres. Some of the main produce items the country is currently shipping include berries and asparagus. "In addition to Peru, Ecuador may also get some relief."
Brazil on the other hand is expected to be heavily affected. The country is in the middle of its mango and ginger seasons. In addition, Argentina is still shipping lemons, and fruit out of Chile will also be impacted. Another region that is currently shipping fruit to the U.S. is South Africa. The strike will result in citrus shipments out of South Africa arriving in the U.S. with a delay.
Backlogs
Some shippers have decided to ship by air to prevent the impact of a potential port strike. However, that option is not available to produce that's already on the water. If a strike occurs, the vessels will likely be waiting on the coast for the ports to re-open. "It is unknown how much delay the closures will cause, but it will create a backlog that could take a month to get cleared," said Bermudez. In preparation of a potential strike, many logistics companies now hurry to collect inbound containers that have just arrived.
Hurricane Helene
If this isn't enough, entrance to Florida ports has been shut down in preparation of Hurricane Helene. Helene went through the Gulf and made landfall as a Category 4 storm in Western Florida last night. The impact was already being felt during the day on Thursday as an asparagus vessel couldn't get unloaded. It usually gets unloaded on Thursdays, but due to the port closure, the vessel will be unloaded tonight.
For more information:
Pat Compres
Advance Customs Brokers
Tel: 786-476-0700
[email protected]
www.advancecustomsbrokers.com