The updated information as of 9/5/2024.
Current Situation
The East Coast labor negotiations, set to expire on September 30, 2024, are now less than a month away from the contract deadline. Both ILA and USMX requested mediation to the Federal Mediation & Conciliation Service in late August. However, no agreement has been reached yet. The risk of a strike across the East Coast and Gulf is increasing.
On September 4-5, ILA holds Wage Scale Meeting in NJ to discuss their final demands. It is reported that ILA is seeking nearly 80% wage increase over the six-year term of the next agreement. Negotiations are currently stalled due to difference not only in wage but also in automation at the terminals.
Impacts on Logistics
There is a gradual shift of cargo from the East Coast to the West Coast. As of July, the proportion of containers from Asia to the Unites States routed through the West Coast was 54.7%, which is +1.1 points from June 2024 and +8.1 points from July 2023, according to data published by Japan Maritime Center. If ILA goes on strike after October, there are concerns that cargo at the East Coast will not be unloaded or moved, and there will be further impacts on the West Coast as well.
Suzuyo America's Services
To minimize the impacts on strike, there are options available for routes via the West Coast instead of the East Coast. Suzuyo America offers a variety of services including below.
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Ocean + Rail Transportation from the West Coast
Service that provides ocean transportation to the West Coast, and then switch to the rail at the West Coast to your nearest ramp
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Transload Service for Marine Containers
Service in which containers accepted from ships at ports are transferred to trucks for delivery instead of trains -
UPS Preferred LCL
Service that integrates marine LCL transportation, UPS North American network and customs clearance, and delivers to the customer's factory faster than conventional LCL cargo ※LCL: a form of transportation in which multiple customers share space in a single container -
UPS World Wide Express Freight (WWEF)
Service that delivers customers' pallet-size urgent cargo to the factory -
UPS Express Critical
Service that provides emergency transportation by combining air, truck, and other transportation methods best suited to the customer's delivery schedule
※UPS: Suzuyo has partnered with UPS, one of the world's leading logistics companies, as a strategic partner and uses its network in the United States to provide emergency transportation services #3～5.
For more details, please contact us.
