Kuehne+Nagel expects “significant delays” at US ports
Published: Tuesday, Oct 1st 2024, 15:50
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The port workers' strike on the US East Coast is threatening to bring cargo ship logistics to a standstill. The logistics company Kühne+Nagel is expecting "considerable delays" and is preparing for longer-lasting difficulties.
"This is a significant event, the scale of which has not been seen since the 1970s," explained Michael Aldwell, Head of Global Ocean Freight at Kuehne+Nagel, when asked by the news agency AWP. Although the strike had been foreseeable for some time, it would nevertheless "almost certainly lead to considerable delays".
Alternative routes for cargo ships are being worked on at full speed and contingency plans are being drawn up. The company is responding in concrete terms with additional staff, for example. And even if the strike could be resolved in the foreseeable future, five to seven days are expected for each day of downtime in order to clear the backlog once the terminals reopen.
There is also a risk that the strike on the East and Gulf coasts of the USA will also complicate the situation at other ports around the world if the situation persists.
No agreement so far
Five weeks before the US presidential election, the port workers' strike threatens to disrupt US foreign trade. Shortly after midnight (local time) on Tuesday, employees at many ports on the US East Coast walked off the job, as reported by the US television channel CNBC, among others. Even a new employer offer with an income increase of almost 50 percent could not avert the strike.
Around half of the container throughput in US foreign trade is handled via the East Coast ports. The strike by tens of thousands of members of the ILA union could therefore be felt relatively quickly - and cost several hundred million dollars a day. The White House had also urged the International Longshoremen's Association (ILA) union and the employers' representative body USMX to reach an agreement.
ILA members load and unload ships and are responsible for the maintenance of port technology. The union points to the billions in profits in container shipping. According to the Wall Street Journal, it demanded a 77 percent increase in income over a period of four years in the negotiations. Another key demand is protective measures against automation, which could lead to job losses.
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