Threat Of US Port Strike Impacts Mexico & Caribbean
The threat of a US port strike has been intensifying and has already had an impact on Central American and Caribbean ocean freight services.
Talks have broken down between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX), with the current working contracts due to expire on September 30th and a major strike planned throughout 36 US ports from October 1st.
Ocean freight carriers have recently announced emergency strike surcharges from next month, which vary by carrier at around $500-$1000 per TEU. The surcharges not only apply to the US east and gulf coast ports due to be impacted, but also to several Caribbean and Mexican services.
The mere threat of the strike has been enough to impact services to Mexico recently, with space on vessels being incredibly difficult to find as carriers seemingly prioritise US traffic ahead of the port walks outs.
A strike of this magnitude, should it proceed or continue for a significant period of time, would be severely damaging on the US economy and a letter signed by 177 US trade associations has urged the US government to intervene. Last week, the Biden administration advised that it would not be doing so.
Fingers crossed an agreement can be reached in the next few days.
