The possible indefinite strike in the fourteen ports on the West Coast of the United States from 1 October is growing louder by the day. To date, union delegates of the International Longshoremen’s Association (ILA) unanimously support calling a strike if a new labour agreement affecting 25,000 dock workers is not reached.
West Coast ports move 550,000 TEUs a week so the mobilisation could affect 1.7% of the global container fleet. A possible indefinite strike could also slow the movement of up to 4.5 million TEUs worldwide, according to some analysts.
Stock Logistic, as an international logistics operator with worldwide maritime operations, is closely monitoring this conflict. The serious impact that the strike could have on operations, as well as on the supply chain as a whole, is significant. Not only would it affect the flow of goods globally, but it could also lead to delays in deliveries, increased logistics costs and the need to adjust routes or seek less efficient alternatives.
Automation, one of the causes of the conflict
According to the ILA union, the refusal to automate the ports and the wage increase are the main reasons for the strike. The workers, according to the same sources, are concerned about the loss of jobs and the precariousness of working conditions. They are also against exclusive port contracts favouring certain companies, a measure which, according to them, negatively affects labour competition.
Key geopolitical factors
In response, nearly 180 business and trade associations have called on US President Joe Biden to intervene ‘immediately’ to mediate in the conflict. This possible strike comes just weeks before the elections in the United States, scheduled for 5 November, at the beginning of China’s Golden Week and almost a year after the start of the conflict in the Middle East, which has caused disruptions in the Suez Canal as a key maritime route connecting the Far East, Europe and the United States. These are very relevant factors affecting disruptions in the supply chain as a whole.