Global Logistics Update - 11/1/24

ILA/USMX Contract Negotiations– It has been about a month since the ILA ended the three-day strike at East Coast ports and extended the current contract until mid-January. Now, in a joint statement by the ILA and the United States Maritime Alliance (USMX), they have announced that they will return to the negotiating table in November.  

This statement was issued on October 25 and advised that the respective negotiating committees will meet in New Jersey, where they will work to agree on terms for a new master contract proposal that can be presented to the full ILA Wage Scale Committee for approval, and later to ILA Longshore workers for ratification.

“The ILA and USMX welcome the opportunity to return to the bargaining table and get a new agreement in place as soon as possible,” they said. With that said, they added that there will be no information shared on the details of the negotiations to the media, thus we expect to have very little news during the negotiating process. The possibility still exists that both parties will fail to reach an agreement, and we will experience a similar situation to what we did in early October. Contingency planning should be considered but as all parties know, the options are limited, and are exacerbated by the situation in Canada. WSSA will monitoring the situation closely and provide updates accordingly.

Montreal -The indefinite strike at Termont terminal (MSC’s terminal) in the Port of Montreal started yesterday, October 31st, at 11 AM. Because the strike has no definitive end date, and with the rush of the holiday volume, it is expected to cause significant congestion and delays with container handling. The risk that MGT Terminals may also join the strike is also a possibility, which would halt all port activities. MSC is exploring alternative options for discharging vessels en route to Montreal and we will share further updates as they become available.  

Valencia - The storm DANA that struck Valencia, Spain, two days ago has caused significant disruption in the region. The Port of Valencia was closed on October 29 and reopened for vessel operations on the afternoon of October 30^th. While container handling was expected to resume yesterday, road restrictions will delay container deliveries. Many of the main thoroughfares are damaged, closed, or partially open due to landslides and flooding. There are over 5,000 damaged vehicles that were displaced by the storm and are now obstructing main access roads, complicating mobility. Rail services are also suspended due to damage, with restoration by Monday if all goes well. Even so, primary routes (like Madrid to Valencia) may take weeks to be traversable. Cargo currently at the port can expect delays, and some vessels may cancel calls. We suggest using alternative ports for urgent shipments, and we will continue to update as the restoration process unfolds.

Chile - The Argentine government announced significant changes to its customs operations which has sparked unrest among customs officials, prompting them to organize strikes and protests at the Pass Los Libertadores. The planned strikes took place earlier this week but halted all customs operations and restricted truck movement through the pass. Congestion at the border is expected and we will provide updates on the situation as they develop. Additionally, due to adverse weather conditions, several bookings have been rolled due to vessel difficulty berthing at San Antonio port. Efforts are being made to manage the backlog at the port, but it may take time to work through the subsequent congestion. Again, we will provide further updates as the situation evolves.