Analysts warn that a possible resumption of the strike by workers from the International Longshoremen’s Association (ILA) at ports in the United States, starting January 15, could have a greater impact on North American industries, including grains.
In October, a 3-day strike – following deadlocks over contract extensions – paralyzed East Coast and Gulf Coast ports, including the Port of New York and New Jersey and the Port of Savannah, Georgia.
The first strike only affected container shipments – in the USA much of the grain is transported in bulk. But, if the possible strike lasts more than a few days, the delays could also affect grain trade, analysts highlighted.
The country’s port workers and their employers have agreed to resume formal negotiations on January 7, according to sources familiar with the negotiations.
The union leadership threatens to carry out a new strike from January 15th, when the current contract expires. Last year, the strike ended after employers, under pressure from the Joe Biden administration, agreed to an interim 62% pay increase over six years. The two parties agreed to extend the contract for three months while negotiating other issues, such as the use of automation at ports.
US President-elect Donald Trump has expressed support for the ILA which may encourage workers. Negotiations collapsed in November when union leaders bristled at employers’ plans to expand the use of semiautomatic machines at ports.
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Trump in December said automation threatens jobs and that foreign-based shipping companies, which control the employer pool, should invest in wages rather than machines.
