AAFA urges US President Biden to intervene in port labour negotiations

The letter reads in part, "The USMX and ILA have not met nor negotiated since June, due to disagreements on wage rates. If a contract is not reached by the end of September, it would cause a coastwide disruption, with 36 ports from Texas to Maine ceasing operations. ... The shipping industry estimates that every one day of disruption creates five days of backlog.

“The East and Gulf Coast ports will lose business long term as importers switch to the West Coast ports. The West Coast ports will face severe disruptions as limited capacity to absorb these products will create significant strains and delays at ports on rail, and on trucks... and just when inflation has started to come under control, American families will face a surge in prices and product shortages not seen since the pandemic. ... Now that we are one week away from a major disruption, the situation is dire, and we need your help now."

The East and Gulf Coast ports accounted for 53 per cent of all US apparel, footwear, and accessories imports, amounting to over $92 billion (about $280 per person in the US) in value. This disruption would occur during peak holiday shopping season and raise the price of goods even higher, sending inflation skyrocketing. This potential shipping crisis will create a scarcity of goods while goods that are still available will be costly for American families, AAFA said in a press release.

Fibre2Fashion News Desk (KD)