A new strike threatens new truck production delays with no cargo moving through the East Coast and Gulf States ports.
Port Union on strike
The International Longshoremen’s Association went on strike starting at midnight on September 30, 2024 affecting 85,000 port workers at 14 major ports after last-minute negotiations with the United States Maritime Alliance employer group (USMX) fell through.
The 14 ports where preparations for a strike have been underway are Boston; New York/New Jersey; Philadelphia; Wilmington, North Carolina; Baltimore; Norfolk, Virginia; Charleston, South Carolina; Savannah, Georgia; Jacksonville, Florida; Tampa, Florida; Miami; New Orleans; Mobile, Alabama; and Houston.
This is the largest port strike since 1977.
There is an impasse over pay between the groups.
This chart shows the top companies impacted by a port strike with two automakers and several tire companies. (Screenshot CNBC.com)
The USMX said in a statement, as reported by AutoNews.com, on Monday it had offered to hike wages by nearly 50 percent and traded new proposals with the union in the last 24 hours and asked for an extension of the current master contract.
This strike could result in billions of lost revenue with items like fresh produce rotting in cargo ships and major impacts on supply chains resulting in parts shortages at U.S. automotive factories.
Shipping giant Maesrk told CNBC.com a strike of just a week could take 4-6 weeks to unravel.
This is just the latest disruption in the supply chain with the pirates attacking ships in the Red Sea, a lengthy drought at the Panama Canal and the Baltimore bridge collapse.
West Coast ports are also affected with more cargo now heading for them causing more costs to shipping companies as well as more congestion at those ports.
As a result of the increase in containers, CNBC reported, rail congestion out of the Port of Los Angeles is building up. In a recent advisory to clients, HLS Shipping wrote rail container dwell times at some U.S. West Coast port terminals “are close to double what they were earlier this summer amid booming imports.”
How will this cause new truck production delays?
A delay in one key part can mean months of delays for automakers and cause frustration for consumers waiting for their new truck. Most automakers have adopted just in time production and missing parts means they will have to park the trucks and SUVs with plans to retrofit them at a later date or give a refund.
This scenario happened to our 2023 Chevy Silverado 1500 which was delayed in production until GM started shipping them missing features like the wireless charger we later installed by ourselves. Other owners received trucks missing heated steering wheels, seats or one key fob instead of the traditional two. Small items to me, deal breakers for other consumers.
If it drags on, it will also impact transportation of new vehicles with other industries like railroads and transportation companies opting to switch over to carrying other items pushing back any new truck shipments.
More than just pay affecting the strike
Union President Harold Daggett on the right with the white goatee says it isn’t just about pay. (Photo courtesy ILA)
Another factor, likely among others like health care and vacation time, causing an issue with the ILA and USMX deals with automation. There is a lengthy post on the Union’s Facebook page which lays out this grievance:
As everyone has heard by now my Boss is taking a hard stand on the never ending threat of automation that is infiltrating our industry, and I have heard the remarks from those that say we need to learn how to deal with it! Well I have a message for those people “kiss my fat A$$”! I got some news for those same naïve people that think it’s a good thing and by going to automation it’s going to save the consumer money, let me shed some light with some facts and history that nobody can dispute!
For instance, when the big 3 automakers decided to install robotic welders, painters, upholsterers, machinists, assemblers and countless other robots into production with the false pretense and promises that it would “remember this quote” (save the consumer money) well I ask you this question, did it cut costs of an automobile? The answer is an Easy NO! In fact, the cost of the standard car went up to pay for the robots and them being installed and thousands of workers were left jobless!
This fact goes for countless companies today Sam’s, Home Depot, Lowe’s, Walmart and many and many more have continually sold the general public on the premises that by going with automation it will save the public money, with the FACT being thousands of good tax paying jobs went away and the CEO’s and CORPORATE EXECUTIVES are getting rewarded and richer by getting raises and bonuses for making record breaking profits while your dads, moms, brothers and sisters are pushed out of work, not to mention the same retailers that sold “you the general public” on the idea that it will save you money has actually gone up on the price of groceries and supplies of all kinds!
This is a trend and a reality that is taking place on every corner and all points between in our country today! So when I hear my boss President Harold Daggett getting attacked by the media and the public for taking a stand for “us” the thousands of men and women that rely on our jobs so that we can provide for our families, well it burns my A$$ to no end! If we had more leaders in this world like this man, we the working men and women of this country would have a fighting chance!
So don’t be so quick to judgment on us the longshoremen of this country for fighting for our jobs because who knows when it will be your turn next!! We are fighting for our rights to make a honest living not to allow a robot to wipe us out so that them corporate bastards can buy another vacation island somewhere!!!!
God Bless the Working Men and Women of this Country!! & God Bless the ILA!!!
Jack Pennington
Soap Box Time “Automation”
Union President Harold Daggett responded:
Hey Jack, thank you thank you thank you. I wish everybody could understand what I’m doing. You just explained it the best way anybody could, yes I am fighting for us every f*cking day, these greedy bastard corporations overseas all they want is money money money, and they don’t give a sh*t about us that’s the truth! They just raised the price to $30,000 per container to Ship a full load, and sometimes they put two customers in that one container, so they get $60,000. They don’t care about us. They would love to see automation up and down the whole East and Gulf Coast, trust me when I tell you that if it was up to them, we would have no jobs. There is a job we have to do right now, and it is the strike and stay strong and don’t give in, I love you big Jack and everything you said. You get it my friend.
Daggett further expanded on the automation concerns in a statement made on a Facebook post.
“USMX brought on this strike when they decided to hold firm to foreign owned Ocean Carriers earning billion-dollar profits at United States ports, but not compensate the American ILA longshore workers who perform the labor that brings them their wealth,” said President Harold Daggett, the leader of the 85,000-member ILA union. “We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve.”
The bottom line
Another disruption to the fragile supply chain can have impacts lasting far longer than the actual strike. For example, last year’s UAW strike caused new vehicle reveals to be delayed and caused trucks like the Ford Ranger to be pushed back for months causing consumer frustration.
As someone with a 2025 Ram RHO on order, I’m concerned about this port strike and you should be too.
