Retailers Press Longshoremen, Management to Return to Negotiations; Alternatives Being Sought
The National Retail Federation urged longshoremen and management to return to the negotiating table for a new East Coast and Gulf Coast longshoremen’s contract, saying retailers heading into the crucial holiday season will be forced to divert cargo elsewhere in a matter of days. “We understand and recognize that there are tough issues that need to be resolved,” said NRF President Matthew Shay in a letter sent to International Longshoremen’s Association President Harold Daggett and U.S. Maritime Alliance Chairman James Capo (here), but “the issue will only be resolved by agreeing to stay at the negotiating table until a final deal is reached. Failure to reach agreement will lead to supply chain disruptions which could seriously harm the U.S. economy.” Shay said some retailers have already enacted contingency plans to ensure that holiday merchandise will reach store shelves in time: “Most retailers using the East and Gulf Coast ports will be forced to execute contingency plans within the next week to meet in-store holiday deadlines.”
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Neither management nor the union had additional comment on the negotiations as of Aug. 28.
Though some are suggesting the U.S. government will not allow the East Coast to be shut down at a time when the U.S. economy is so fragile, many importers and exporters should still consider their options should the worst occur, said brokerage firm Livingston International in an email to interested parties (here). It said many importers will be rerouting freight, but "delays are expected regardless of whether or not the ports actually close." Livingston recommended:
- Ensure that warehouse and distribution centers have enough inventory to cover operations if there's a two week strike.
- For the first two weeks of October, consider rerouting it to a Canadian port or to the West Coast.
- Shifting some critical shipments to air is also an option, though many flights will be filling up quickly.