Ron Leibman, chair of McCarter’s Transportation, Logistics & Supply Chain Management Practice, speaks with The Baltimore Sun to discuss the potential port strikes as the contract between dockworkers and their employers up and down the East and Gulf Coast is set to expire on September 30, 2024. Members of the International Longshoremen’s Association from Maine through Texas are preparing to strike if they cannot reach an agreement with the U.S. Maritime Alliance. Such a strike could disrupt supply chains, shipping, and jobs across many product lines, including at the Port of Baltimore, which is still recovering from the Francis Scott Key Bridge collapse.
“Dock workers feel empowered by pro-labor sentiments and contract victories by the United Auto Workers and UPS employees, represented by the International Brotherhood of Teamsters,” but, that impact of a strike may be somewhat lessened because “a lot of the fall seasonal retailers and wholesalers saw this coming and they made efforts to forward stock inventory, at least to get through the Christmas season,” Leibman said.
Consumers are also affected by this potential strike, as they are likely to feel the pinch from shut down or inefficient marine terminals, and from increased ocean freight rates due to reduced capacity. “As rates go up,” Leibman said, “so do the costs of goods to people like you and me.”