The strikes at US coast seems to be eminent, and all the stakeholders are trying to evacuate maximum possible cargo out of the port till 12:01 AM 1st October, when the strike would start.
- Approx 49% of US imports containerized cargo enters through US East coast and the Gulf Coast.
- The US ports can be shut from Maine to Texas.
- Additionally, majority of refrigerated cargo enters USA through East coast.
USA government officials are in discussion with USMX and ILA to find a peaceful solution
For USA imports the peak season is from July to November and if the strike goes on for a longer period then it would impact the supply and storage, some of the companies may store more the required material expecting supply slowdown while some may not get the required amount of cargo.
USA depends on imports for many type of products line Cherry, Cocoa, Sugar Car parts – For example, Nearly most of the banana in US is imported, Port Wilmington is also called as banana port will also be shut down.
How can the US Government intervene in case of high risk
Under Taft-Hartely Act, US government can seek court order for 80 days cooling off Period, this would suspend the strike.
In case of a threat to countries economy US can seek the court order.
Conclusion
For long the ports have dreamed of automation, while there is a fear that automation can eat up the share of job of port workers, a mid term solution should be brought in to stop the strike.
Both the parties should learn from the past strike of 1977.
You can read earlier news on this topic by clicking on below link
