The INTERNATIONAL Longshoremen's Union (ILWU), which represents workers in the United States and Spain, has called for the first time for a suspension of the talks, Reuters reported. 120,000 empty boxes filling the east Coast!
West coast ports are not cleared, east side is blocked! In addition, the Port of Shanghai, which has just recovered 90% of its throughput, may also fall into heavy congestion once again due to the pressure from various parties.
It could trigger the biggest port closure crisis since the outbreak
The International Longshoremen's Union (ILWU), which represents workers in the United States and Spain, has called for the first time for a suspension of negotiations with the Pacific Maritime Association (PMA), which represents employers.
The industry pointed out that ILWU's strategy is suspected of "preparing for a strike", which may trigger the biggest port blockage crisis since the epidemic.
The strike will involve 22,400 dockworkers at 29 west Coast ports. The New York Times notes that nearly three-quarters of the more than 20,000 dockworkers are based at the ports of Long Beach and Los Angeles. The two ports are the main gateways for goods from Asia to the United States, and congestion at their ports has been a problem for the global supply chain.
There are concerns about the outcome of the talks based on past results. The wave of strikes at Westport first appeared in 2001. At that time, due to labor disputes, the dockers of Westport went on strike directly, resulting in the closure of 29 ports on the West Coast for more than 30 hours. The economic loss of the United States exceeded 1 billion DOLLARS a day, and indirectly impacted the Asian economy.
At a time when China was fully back to work after the epidemic, the dockworkers in the US and Spain stopped their negotiations, throwing another bomb into the global shortage of shipping capacity. Last week, The Shanghai Container index (SCFI) ended 17 consecutive falls, the European ground comprehensively up; Among them, as a barometer of China's export, "China Export Container Freight Index" (CCFI) was the first to rise, from the Far East to the East of the United States, the West of the United States increased by 9.2% and 7.7%, indicating that the pressure of rising freight rates increased.
Freight forwarders pointed out that the recent lifting of the COVID-19 pandemic led to a rebound in freight volumes. Previously, the two shipping giants Maersk and Herberod had expected a sharp drop in freight rates in the second half of the year "should not come so soon" (), because the impact of the dockworkers' negotiations between the US and Spain was not taken into account. The personage inside course of study estimates, since this week, the spot of container, long about freight rate is expected to enter golden crossing point.
According to a person familiar with the situation, the two sides have been locked in intensive negotiations since May 10, with "little progress" in the negotiations. ILWU appears to be in no hurry to reach a conclusion before the contract expires on July 1, and dockworkers have appeared to go slow or even strike.
According to IHSMarket JOC's shipping media reported that on behalf of the American west bank dockers international terminals and warehousing union (ILWU) has called for a moratorium on contract talks with the U.S. west coast port employers, until June 1, if approved, will be suspended starting on Friday, reason is still unclear, the union for temporary did not respond to repeated requests for comment. But people familiar with the matter said it was clear that labor was in no hurry to finalise a new contract before the current one expires on July 1.
The Biden administration had told labor and management it would not tolerate disruptions at west Coast ports. The Biden administration has met almost weekly with West Coast stakeholders since creating the port envoy's office last fall. A member of the task force said previously that the White House made it clear to both employers and unions that it would not tolerate dockworker slowdowns or employer lockouts this year. But it seems that ILWU, which endorsed Biden and Harris in the presidential election more than a year ago, is not buying it.
120,000 empty boxes fill the east coast
Before the west coast ports are fully dredged, the east side is blocked - 120,000 empty containers filling the east coast!!
The ports of Oakland and Savannah in California and Charleston in South Carolina are the next best option for many ships trying to bypass the jams in Southern California after the ports of Los Angeles and Long Beach on the West Coast of the US continued to be flooded with containers last year, US media reported. Now ships looking for a "gap" into the mainland are flooding ports in New York and New Jersey on the East Coast, and that's just the beginning.
Cargo handling facilities at the ports of New York and New Jersey have struggled since the beginning of the year as shippers take longer to pick up goods from terminals and empty containers pile up waiting to be shipped overseas. Container yards at east Coast ports were filled with 120,000 empty containers, more than twice as many as usual. Some terminals are currently operating at more than 100% capacity, leading to blockages.
As the summer shipping season gets underway, port officials are talking to shipping companies, truck drivers and warehouses to ease congestion.
In addition, according to the Shanghai side of the information, Shanghai port packing list daily throughput has recovered 90%. At present, the passage and operation of ships in Shanghai port are normal, and there is no congestion in the port. As now the parties continue to expand the pressure of congestion, The Port of Shanghai or once again into a big congestion.
Post time: May-27-2022