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Biden will not stop port strike, hoping for deal

  • Market: Freight
  • 30/09/24

US president Joe Biden said he is optimistic for a labor agreement between thousands of US dock workers and their employers, and that he would not block a strike expected to start 1 October.

"I think they'll settle the strike," said Biden said over the weekend about the dispute between the International Longshoremen's Association (ILA) and United States Maritime Association (USMX) that could halt container traffic at many US east coast and Gulf coast ports. "[I] spoke with both sides… We support the collective bargaining effort."

He ruled out the possibility of government intervention if the ILA were to strike "because there's collective bargaining, and I don't believe in [the] Taft-Hartley [Act]," referring to the 1947 law that curtails some union powers.

The ILA and the USMX could not immediately be reached for comment.

US ports and railroads have been preparing for a strike for many weeks, with much work expected to slow or stop ahead of the 1 October strike deadline.

The strike is expected to have the greatest impact on products carried on container ships given the ILA's membership. Movements of dry bulk cargo, such as coal and grains, are expected to be less affected by a potential work stoppage, though there could be side effects from the congestion of other products being rerouted to ports not affected by the strike.

Movement of crude, refined products and many petrochemicals are not expected to be interrupted by an ILA strike, but some polymers that are moved by container, including polyvinyl chloride (PVC), polyethylene (PE), and polypropylene (PP), could be disrupted.

Republican member of congress had called on Biden to intervene in the dispute. Last week USMX filed an unfair labor practice charge against ILA with the National Labor Relations Board, accusing the union of "repeated refusal" to negotiate, but the board has not ruled on the request.


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