02 Oct Day 2 of US East & Gulf Coast Port Strike: Shipping Lines Declare Force Majeure
As the US East and Gulf coast port strike enters its second day, major shipping lines, including ONE, CMA CGM, and APL, have declared force majeure due to ongoing disruptions. The strike, led by the International Longshoremen’s Association (ILA), has brought operations to a standstill across numerous ports.
Hopes for government intervention were dashed when the White House expressed support for the union, urging carriers to provide fair wages. President Biden emphasized the substantial profits carriers have earned since the pandemic and warned against price gouging during the strike.
The ILA rejected a near-50% wage increase offer from USMX, citing concerns over low wages for highly skilled work and the threat of automation. The union remains firm in its stance against any automation that threatens jobs.
Shipping lines have begun implementing contingency plans, with CMA CGM informing customers that they may need to adjust delivery locations. Maersk has stopped accepting new bookings for refrigerated cargo and is advising customers to hold onto empty containers.
The strike continues to cause significant delays and congestion, with no immediate resolution in sight.
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