Maersk: The US East strike negotiations entered a stalemate, the supply chain may be disrupted
Maersk has released a North American market update focusing on the labor negotiations between the United States Maritime Union (USMX) and the International Longshoremen's Association (ILA). Maersk warned that a complete shutdown would severely impact the supply chain and take weeks to recover. In response to the potential risk of disruption, contingency plans have been prepared to help customers reduce the impact on customers' supply chains.
Maersk has released an important update on the North American market, with a particular focus on the upcoming labor contract negotiations between the United States Maritime Union (USMX) and the International Longshoremen's Association (ILA). It is reported that the current contract between the two parties will be officially terminated on September 30, which has caused deep concern within the industry and shippers about the potential for disruption in the operation of ports in the US Gulf of Mexico and East Coast.
To ensure that all parties are informed, the International Longshoremen's Association (ILA) has formally submitted the necessary notice to the relevant government agencies and negotiating parties, making it clear that a strike will occur if a new agreement is not reached in time. However, it is important to note that due to the "no strike" clause in the terms of the contract, which remains in effect until the expiry of the contract, no substantial strike action is expected until at least October 1. However, the submission of such notification itself also reflects the status quo that the negotiating parties have not yet reached a comprehensive consensus.
Maersk expressed confidence that the two parties will be able to reach an agreement to maintain the stability and efficient operation of the supply chain. Despite the history of successful negotiations between the two sides, Maersk is also frank to point out that if a new agreement is not reached, the possibility of a strike still exists and cannot be ignored.
Maersk said that any shutdown, regardless of its size, could have a profound impact on the supply chain. In particular, a complete shutdown in the Gulf of Mexico and the East Coast of the United States, even if it lasts only one week, may take up to four to six weeks to return to normal operations, and during this period, a large backlog of goods and transportation delays will continue to accumulate, further increasing the pressure on the supply chain.
Maersk is fully prepared to deal with the potential risk of disruption and is committed to actively assisting customers in exploring alternative transport routes, modes of transport and distribution options to minimize the impact on customers' supply chains. At the same time, Maersk encourages all customers to maintain close communication with their representatives to jointly assess supply chain needs and, if necessary, develop personalized contingency plans to address the various challenges that may arise.
Maersk has released an important update on the North American market, with a particular focus on the upcoming labor contract negotiations between the United States Maritime Union (USMX) and the International Longshoremen's Association (ILA). It is reported that the current contract between the two parties will be officially terminated on September 30, which has caused deep concern within the industry and shippers about the potential for disruption in the operation of ports in the US Gulf of Mexico and East Coast.
To ensure that all parties are informed, the International Longshoremen's Association (ILA) has formally submitted the necessary notice to the relevant government agencies and negotiating parties, making it clear that a strike will occur if a new agreement is not reached in time. However, it is important to note that due to the "no strike" clause in the terms of the contract, which remains in effect until the expiry of the contract, no substantial strike action is expected until at least October 1. However, the submission of such notification itself also reflects the status quo that the negotiating parties have not yet reached a comprehensive consensus.
Maersk expressed confidence that the two parties will be able to reach an agreement to maintain the stability and efficient operation of the supply chain. Despite the history of successful negotiations between the two sides, Maersk is also frank to point out that if a new agreement is not reached, the possibility of a strike still exists and cannot be ignored.
Maersk said that any shutdown, regardless of its size, could have a profound impact on the supply chain. In particular, a complete shutdown in the Gulf of Mexico and the East Coast of the United States, even if it lasts only one week, may take up to four to six weeks to return to normal operations, and during this period, a large backlog of goods and transportation delays will continue to accumulate, further increasing the pressure on the supply chain.
Maersk is fully prepared to deal with the potential risk of disruption and is committed to actively assisting customers in exploring alternative transport routes, modes of transport and distribution options to minimize the impact on customers' supply chains. At the same time, Maersk encourages all customers to maintain close communication with their representatives to jointly assess supply chain needs and, if necessary, develop personalized contingency plans to address the various challenges that may arise.
