News / Vessel bunching on USEC slow to clear, as ILA shapes new 'strategy'

© Olena Golubka

The ILA has vowed to continue its “hell-bent” fight against automation as the effects of last week’s three-day strike disrupt supply chains. 

The union told its members over the weekend that, while it had negotiated an “unprecedented” 61.5% wage increase offer across six years, it had decided, as a “crucial part of the overall strategy”, not to accept this immediately. 

“If we were to accept the wage increase now, we would have to sign a no-strike clause. This would give the employers leverage to block us from addressing other crucial issues that impact every member’s job security and future,” it explained. 

And the union added that by extending the labour contract until 15 January, it maintained its ability to “fight for the other important matters that go beyond economics”, which include port automation. 

The ILA’s fight to “prevent automation replacing jobs” presented a huge hurdle during negotiations, owing to automation’s role in port efficiency and modernisation and the fact that many of the world’s ports have already advanced beyond the point of no return for certain machinery.  

The union said: “We are fighting to guarantee that ILA members continue to handle key tasks at port facilities, such as manning cranes and servicing equipment, preventing employers from outsourcing these jobs to non-union members or automated systems.”  

Meanwhile, last week’s three-day strike has left severe vessel bunching as ships wait to load or unload cargo from ports across the US east and Gulf coasts, a logjam that may linger until the end of the month.  

According to Freightos’s head of research, Judah Levine, there are approximately 50 vessels waiting at anchor. 

French carrier CMA CGM announced that vessels waiting “will berth and be operated on a first-in, first-out basis”. It has suspended its ‘local port charge’ scheduled to take effect on 11 October. 

And MSC announced it would suspend its Emergency Operations Surcharge on export shipments from east and Gulf coast ports intended for 27 October.  

Hapag-Lloyd extended its detention ‘free time’ to 6 October, and said it “will reassess the situation” today. For demurrage, it “will adhere to terminal policies and only pass on charges if billed”, but added it was “actively seeking leniency” on its customers’ behalf.  

The German carrier also noted that it had rerouted cargo to alternate ports, ensuring shipments were not delayed, but warned it may invoke “necessary recovery of additional costs caused by the strike”.  

Maersk told customers its bookings for export refrigerated containers via ILA-impacted ports from ‘store-door origins’ were not currently being accepted. 

The ILA concluded: “We plan to meet with [employer association] the USMX as soon as possible to negotiate the best contract in ILA history.”  

However, as The Loadstar managing editor Gavin van Marle points out in today’s News in Brief Podcast, the new 15 January negotiation deadline will coincide with heightened pre-Chinese New Year shipping demand, which will exacerbate any strike repercussions, like backlogs and delays etc, should it come to that.