Heated Rhetoric Up as Port Strike Deadline Counts Down

AP Photo/Patrick Semansky

Getting testy out there - that's all you can say about that.

A couple of days ago, I caught you all up on the looming East and Gulf Coasts longshoremen's strike, set to happen close-of-business 30 September.

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There are a lot of different irons in this fire, from the blustering cantankerousness of Harold Daggett, the International Longshoremen Association’s (ILA) president and the United States Maritime Alliance (USMX), who are the port operators running the docks - those are the two negotiating parties - and all the auxiliary characters, from shippers to farmers to truckers to manufacturer and retailers plus the US Chamber of Commerce, to boot.

All the ancillary interested parties have been crying foul for weeks and begging the Biden-HARRIS administration to step in to avert a possible economic disaster, to no avail.

Biden ain't budgin' but does send his thoughts and prayers.

..."We are monitoring and assessing potential ways to address impacts to U.S. supply chains related to operations at our ports, if necessary," White House spokesperson Robyn Patterson said. "We continue to encourage the parties to continue negotiating towards an agreement that benefits all sides and prevents any disruption," she said.

The head of the USMX is giving the White House one more valiant shot this afternoon, and Godspeed, my man.

The head of the United States Maritime Alliance (USMX) is due to visit the White House Friday, sources said, as the Biden administration reaches out to maritime employers along the East and Gulf coasts just days before what would be the first coastwide longshore work stoppage since 1977.

Three sources with knowledge of the matter told the Journal of Commerce that USMX Chairman and Chief Executive Dave Adam will be traveling to Washington for a meeting at the White House. It was not immediately clear whether Adam will meet with President Joseph Biden or Acting Labor Secretary Julie Su...

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It's gonna be like talking to a turnip.

Some businesses have been able to stockpile a bit of inventory to cover for a few days, but that's not true in many cases. High interest rates have kept many from being able to order ahead in anticipation of supply interruptions, so they are limited in carrying what they have on hand. Shortages of things beginning relatively quickly are a real possibility of the strike going longer than a couple of days.

The hit to our agricultural sector alone would be enormous, not to mention the bananas and booze!

...Each year, more than 1.2 million metric tons of bananas arrive at ILA-handled ports, supplying over a fifth of the nation’s bananas. Beyond bananas, delays and shortages would occur for a wide array of everyday items. Price increases are a possibility as well. Nearly 90% of imported cherries, 85% of canned foodstuffs, 82% of hot peppers, and 80% of chocolate that arrive via waterborne vessels are offloaded from containers at these ports. The situation is similarly significant for beverages transported by vessel, with 80% of imported beer, wine, whiskey, and scotch, as well as 60% of rum, arriving in containers at East and Gulf Coast ports. Over 100 other food categories also depend on the smooth operation of these ports.

In any case, all the additional costs will roll downhill to the consumer eventually, regardless.

Hurricane Helene's arrival has also thrown a wrench into the expedited offloading of ships on East Coast ports like Jacksonville, Savannah, and Charleston. The weather delayed getting as many ships in and out as possible before the strike, so pre-emptive plans took a hit.

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A more ominous tone has entered the conversation, as well. There's been lots of talk about diverting cargo to Canada and the West Coast as alternatives to either not shipping at all or having your cargo stacked up on a boat waiting outside a harbor until the strike's over.

Remember the oil tankers they used to count off the coast of New Jersey/New York and outside of Port of Los Angeles every morning during that oil unpleasantness years ago? Or even during COVID when ships backed up.

Same-same, only it would be every last type of cargo vessel afloat that would normally be coming into those ports - car parts, cars, cocoa, coffee, grains - everything.

So the diverts would, in theory, help alleviate some of that, but there's a wrinkle.

The first issue is diverting to Canada - the longshoremen at the Port of Montreal have just issued their own strike warning.

...Separately, the Port of Montreal union affiliated with the Canadian Union of Public Employees issued a 72-hour notice that its own three-day strike starts on Monday, Sept. 30. Mia Ginter, director of North American ocean shipping at C.H. Robinson, tells CNBC this strike could exacerbate the U.S. port strike disruption. “With Canada being a main contingency route, an overlapping strike at the Port of Montreal, even with some terminals remaining operational, will significantly weaken this as a contingency route,” she said.

Worse - the obstreperous Daggett seems to be flat-out saying that the West Coast longshoremen may well join his ILA members in some sort of sympathy work action themselves, alongside the ILA union chapters in Canada and elsewhere. 

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HOLY SMOKING ECONOMY

As the International Longshoremen’s Association port workers move closer to a strike at East Coast and Gulf Coast ports, the union is warning that major importers such as LG Electronics, Walmart, Ikea, Samsung, and Home Depot will find no options to divert trade to Canada or the West Coast as other unions close ranks in support of its labor battle.

...The last time the ILA went on strike, in 1977, the ILWU union at West Coast ports supported it by allowing ILA members to go to the Port of Los Angeles to stop the unloading of a diverted vessel. Its president Harold Daggett has cited this historical example in recent communications with rank-and-file members, which voted unanimously to authorize a strike.

“We’ll shut them down,” Daggett said in a recent video message to union members.

WE'LL SHUT THEM DOWN

The ILA is essentially threatening to induce national transportation and supply gridlock to get what they want.

...Adams’ letter has led to speculation that the ILWU could strike in sympathy, particularly with regard to vessels diverted from East and Gulf Coast ports. But one expert says that the possibility of an extended stoppage is unlikely. 

“Since there is an existing contract on the West Coast, there could be perhaps a one-day stoppage, but there are no grounds based on the ILA situation on which the ILWU members can strike,” said Susan Kohn Ross, an attorney specializing in customs and trade at Mitchell Silberberg & Knupp LLP, based in Los Angeles, in an email exchange. “So, if they were to do so, I would expect the carriers would get an injunction forcing the longshore workers to go back to work, post-haste!”

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I have an answer for that, but this is a family site, as Ed has to keep reminding me.

Poor Politico is all torn up about the bad or worse choices in front of their candidate.

How a massive port worker strike could scramble the 2024 race

Ports along the East and Gulf coasts are on the verge of a dockworkers strike that could damage the U.S. economy just a month before the election — creating a political quandary for President Joe Biden and Vice President Kamala Harris.

Intervening to stop the strike — as Biden did two years ago to prevent rail workers from walking off the job — could sour labor voters on Harris, who is trying to shore up support from blue-collar workers who could decide the election in critical swing states. But allowing a lengthy work stoppage could unleash pain on consumers, driving up prices and delaying imports of automobiles, bananas and even Christmas decorations.

The president of the 132-year-old union, erstwhile Biden ally Harold Daggett, said he’s willing to push the economy past its breaking point if the United States Maritime Alliance doesn’t agree to substantial wage hikes and safeguards against the automation of union jobs.

Sure, go ahead and break the economy, Mr. Daggett. Well, break it more than Biden-HARRIS already have.

It's so strange that the author is wringing his hands and still gets no more help or answers from the administration than the American people ever do.

...The Harris and Trump campaigns declined to comment.

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So much for that "opportunity economy."

She and her vegetative boss may have finally sunk it completely.

Someone should ask her about it - if they can catch her out in the light of day.

Heh...I know. 

Don't talk crazy talk.

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