Retailers Frustrated by Port Strike, Call for Resolution

After failing to reach an agreement on a new labor contract covering workers at U.S. East and Gulf Coast ports, the International Longshoreman’s Association (ILA) has expressed intent to strike Tuesday at 12:01AM EDT. The Retail Industry Leaders Association’s (RILA) President Brian Dodge issued the following statement in response.

“Retailers have been patiently watching the ongoing port labor negotiations with hopes that a mutual agreement would be reached to avoid a work stoppage. However, the industry is frustrated to see almost half of U.S. oceangoing imports and exports on the verge of an immediate halt, with the fallout possibly leading to severe supply chain disruption. 

“As logistics leaders, retailers have already activated contingency plans, including rerouting shipments, to ensure consumer goods reach their final destination with limited disruption or extra costs. Shoppers can rest assured holiday merchandise will be on shelves; however, the longer this work stoppage goes on, the harder it will become to shield customers from its effects. 

“Even though leading retailers have prepared for disruptions, the U.S. economy is likely to see immediate impacts from even a short-lived strike. Latest estimates suggest a strike could cost the economy over $4 billion a day. We’ve weathered challenging economic storms over the last several years, most of which were unexpected and out of our control. In this case, the two parties had years of preparation to find an agreement, making the impending strike and its economic harm entirely foreseeable and avoidable. 

“RILA urges ILA and USMX to return to the negotiating table and remain there until a deal is reached which ensures these vital supply chain gateways are fully operational to serve the American public. However, given the ILA’s current posture, we implore the Biden-Harris administration to stay engaged and consider all options to keep the U.S. economy open for business.”

###
Tags
  • Supply Chain
  • Public Policy
  • Keeping Supply Chains Open & Resilient
  • Transportation and Infrastructure
  • Workforce

Stay in the know

Subscribe to our newsletter