The looming threat of a strike at East and Gulf Coast ports has intensified following the breakdown of contract negotiations last week. Approximately 85,000 dockworkers, represented by the International Longshoremen's Association (ILA), are set to see their labour contracts expire on October 1 with the U.S. Maritime Alliance (USMX). The primary issue obstructing a new agreement is centred around automation practices.
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The prospect of a strike has also spurred shippers to consider accelerating shipments ahead of the October 1 deadline, potentially increasing cargo volumes on the East and Gulf Coasts in the coming months. This situation unfolds against a backdrop of rapidly escalating ocean container rates across both coasts, exacerbating challenges for importers across various industries. Current spot rates have surged nearly 60% in six weeks, with average rates for 40-foot containers reaching $4,801, a stark increase of 202% compared to last year.
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