U.S. importers brace for higher freight rates amid strike threat
An impending union strike at ports along the U.S. East and Gulf Coast threatens to increase freight rates and cause massive disruptions in ocean container traffic, trapping U.S. importers in a vicious cycle. See also: East Coast and Gulf Coast ports face strike threats as ILO suspends labor talks The International Longshoremen’s Association (ILA) recently announced the suspension of labor contract negotiations with the United States Maritime Union (USMX). The current agreement will expire on September 30, sparking concerns about a strike. “Shippers are already bringing forward imports ahead of the traditional third-quarter peak season due to supply chain concerns over the Red Sea conflict,” commented Peter Sand, principal analyst at Xeneta. “They are likely to accelerate these efforts, further complicating the situation, as the risk of disruptions at East and Gulf Coast ports increases.” Increased frontloading of imports has led to severe congestion at ports in Asia and Europe, causing spot rates for ocean containers to rise by more…
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