Wednesday, September 12, 2012
Miami-based logistics company urges ILA-USMX resolution
The negotiations between the International Longshoremen's Association and their employer group, the United States Maritime Alliance, are set to resume next week under the, and at least one major logistics firm with a client base of exporters and importers has publically weighed in with an urgent call for a contact agreement before the September 30 master contract deadline.
"A resolution between the two sides is extremely important for shippers. Without an agreement, the adverse effects on the national and global economy will be extremely dire. It is in the best interest for both parties at the negotiating table to facilitate the movement of goods at East and Gulf Coast ports prior to the holiday season," said Nelson R. Cabrera, business development manager of Miami-based Lilly & Associates in a statement.
Reports of shipping industry-wide fear of a possible labor strike if a contract agreement is not struck by the deadline have permeated with possible re-routing of supply chains through alternative gateways such as West Coast ports.
"The increased congestion at West Coast ports will result in a chaotic bottleneck affecting the flow of goods in and out of the United States at the height of the shipping peak season," said Cabrera. "This places an enormous hurdle in the increasingly lean supply chains of our nation's importers and exporters."
Lilly & Associates cited what the company said would be "costly ocean freight reroutes, coupled with excessive congestion surcharges in excess of $800 per 20-foot container, [as being] especially devastating for shipper's slim margins during this economic recession."
More Newswire stories
California's Governor extends marine fuel tax exemption
Top tier Chinese shipping firms lost $1.2 bil in H1
European Union sets stricter sulfur limits for ship fuel
Today's Cargo News Archives