US port strike averted
Shay said the extension is a sign that the ILA and USMA are listening to the concerns of the shipping community, Ship & Bunker reports.
National Retail Federation (NRF) President and CEO Matthew Shay has welcomed news that a port strike threatening the U.S. East and Gulf Coasts has been called off, saying it was a sign that the parties involved were listening to the concerns of the shipping community.
"We welcome today's news that a contract extension has been reached. However, we continue to urge both parties to remain at the negotiating table until a long-term contract agreement is finalized," he said in a statement today.
"While a contract extension does not provide the level of certainty that retailers and other industries were looking for, it is a much better result than an East and Gulf Coast port strike that would have shut down 14 container ports from Maine to Texas."
Container Cliff Timeline
Sep 19 ILA threaten to Strike
Sep 20 ILA, USMX agree to 90 day talks extension creating the Dec 29, 2012 "container cliff"
Oct 15 FMCS Director George H. Cohen says "talks making good progress"
Oct 24 FCMS say "major issues" have been discussed
Nov 23 USMX calls ILA leadership "uncompromising"
Dec 20 Talks stall over container royalty payments
Dec 21 Shipping companies warn of strike impact, retail industry calls on President Obama to step in
Dec 24 Maersk Line give details of container surcharges should ILA strike
Dec 24 FCMS says ILA, USMX set to meet before Dec 29 container cliff reached
Dec 28 Strike action called off, talks deadline extended until January 28, 2013 after agreement reached in principal over container royalties
Talks between the International Longshoremen's Association (ILA) and the U.S. Maritime Alliance (USMX) over a master contract covering some 14,500 jobs broke down last week, and ILA workers had threatened to strike as the so called "container cliff" talks deadline of December 29, 2012 approached.
Shay had previously written to U.S. President Obama urging his administration to intervene, saying any strike would prove devastating for the U.S. economy, and the country could not afford to wait for a strike to occur before the government stepped in.
In 2002 workers were locked out at 29 West Coast ports for 10 days and caused as much as $10 billion of damage to the U.S. economy before then President George W. Bush, invoking powers given to him by the 1947 Taft-Hartley Act, ordered an 80-day cooling-off period.
In today's statement, Shay reiterated that a coast-wide port shutdown "is not an option" and would "have severe economic ramifications" for local, national, and global economies, as well as wreaking havoc on the supply chain.
"Our ports and the cargo and containers that flow through them are truly our economic lifelines to the world," he said.
"Following the devastation of Hurricane Sandy and the recent eight-day port strike in Los Angeles and Long Beach, this extension is a welcomed sign to the entire supply chain community - from manufacturers to retailers - that the two sides understand the risks of a shutdown and are listening to the concerns of the shipping community."