By Free Republic | Created at 2024-10-03 20:22:55 | Updated at 2024-10-07 00:25:23
3 days ago
Chaos is building for shippers as U.S. port strike continues and costs rise
CNBC ^ | 10/3/24 | Lori Anne Loracco
Posted on 10/03/2024 1:13:20 PM PDT by CFW
Key Points:
As the East&Gulf coast ports strike hits day three on Thursday, there are multiple signs of supply chain stress building.
Thousands of shipping containers were potentially dumped at the wrong ports as ocean carriers scrambled to find alternate options for cargo, and increased tracking of diverted vessels is a direct challenge to an ILA-union threat to stop unloading at other ports.
Surcharges imposed by shipping giants are starting to mount, and the need to use inland transportation options like trucking and rail for diverted cargo are adding to costs.
A major grocery chain CEO tells CNBC that while it is well stocked for weeks to come, some go-to items will not be available and prices on items like bananas will rise significantly.
As the East and Gulf coast ports strike hits its third day on Thursday, the nationwide logistics system is beginning to show signs of stress, with thousands of containers dumped at the wrong ports and billions of dollars in trade at anchor on ships. Ocean carrier surcharges for shipping clients are beginning to mount, and the need to use trucking and rail to move diverted cargo to ultimate destinations is adding to supply chain costs.
The building chaos is occurring with no signs that the International Longshoremen’s Association and United States Maritime Alliance are back at the negotiating table in an attempt to work through significant differences on wage increase levels and use of port automation, despite consistent efforts by the Biden administration to get the parties back into collective bargaining.
In the mad dash to unload as many containers as possible for clients, ocean carriers moved containers off at alternative ports, but according to Vizion, which tracks container movements, roughly 2,000 shipments may have been dropped at a port that was not their intended destination.
(Excerpt) Read more at cnbc.com ...
TOPICS: Business/Economy; Culture/Society; Front Page News; News/Current Events
KEYWORDS: businesses; consumergoods; shippers; strike
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I see no sign of the strike ending soon. The Hurricane and the strike -- the Biden/Harris administration has royally screwed up their response to both. Intentionally, I believe.
1 posted on 10/03/2024 1:13:20 PM PDT by CFW
To: CFW
Que the Biden/Harris “price gouging” comments.
2 posted on 10/03/2024 1:16:13 PM PDT by Opinionated Blowhard (When the people find that they can vote themselves money, that will herald the end of the republic.)
To: CFW
Have no fear...Guided by Kamala, Biden will become our savior and invoke Taft-Hartley. Which will leave it in Trumps’ lap after the election.
3 posted on 10/03/2024 1:17:01 PM PDT by Sacajaweau (mY)
To: Sacajaweau
4 posted on 10/03/2024 1:17:17 PM PDT by Sacajaweau (mY)
To: CFW
I see no sign of the strike ending soon.
They want 6% raises per year and a promise of never automating? Can't see that getting settled soon.
5 posted on 10/03/2024 1:18:18 PM PDT by 1Old Pro
To: CFW
“— the Biden/Harris administration has royally screwed up their response to both.
Yet the Americans who rely on the MSM will hear nothing of this. In fact, they will praise the Biden/Harris administration for its fast response and $750 checks to people who lost everything.
6 posted on 10/03/2024 1:22:20 PM PDT by hanamizu ( )
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