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US port strike could ‘severely disrupt’ spirits
Nearly 50,000 port workers in the US have gone on strike in a move that could cause “severe disruption” to the spirits sector.
Employees who are part of the International Longshoremen’s Association (ILA) union have gone on strike across 36 ports in the US over contract negotiations for ‘fair and decent’ pay.
The port strike began at midnight EST on 1 October 2024 after a contract expired between the workers and the US Maritime Alliance (USMX), following discussions that broke down in June.
The action represented the first strike at East Coast and Gulf Coast ports since 1977.
The ILA said: “The ocean carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA longshore workers an unacceptable wage package that we reject.”
The labour union highlighted that its workers “continue to be crippled by inflation due to USMX’s unfair wage packages” and said shippers have increased prices for containers – rising from US$6,000 to US$30,000 for a full container.
‘Bottleneck supply chains’
Chris Swonger, president and CEO of trade body the Distilled Spirits Council of the US (Discus), expressed his “deep concern” about the closure of the East Coast ports, warning that they could cause “severe disruption” to the industry.
He said: “US ports are vital to the import and export of distilled spirits. In 2023, 77% of US distilled spirits exports and 43% of distilled spirits imports passed through the ports that would be impacted by a strike.
“This is a critical time for the spirits sector as companies are shipping products in advance of the important holiday shopping season, which represents 20% of total sales.
“Any disruption of port operations could bottleneck supply chains, delay product deliveries, and result in product shortages both in and outside of the United States.”
Swonger called on the ILA and USMX to return to negotiations and “reach a resolution to ensure the US East Coast ports remain open and the flow of goods is not interrupted”.
The chief operating officer of alcohol importer MHW, John Wrenn, added: “It would take approximately one week for beverage alcohol importers to recover from a one-day strike and get operations ‘back to normal.’
“It would take approximately four to six weeks to recover from a one-week strike. Although we may face challenges in the weeks ahead, we are keeping clients informed and minimising disruptions wherever we can.”
He said the company was “closely monitoring container arrival and clearance status” and had made “every effort to pick up available containers from impacted ports by September 30”.
Last month, Discus alongside a large number of organisations representing manufacturers, wholesalers, retailers, farmers and other industries wrote to US president Joe Biden to voice their concern about the dispute between ILA and USMX.
In its second letter to the president about the potential action, dated 17 September, the groups urged Biden to step in to prevent the strike. However, on 29 September, Biden told reporters that he would not intervene.
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