AAFA Calls on Biden to Intervene in East Coast Port Talks
With the Sept. 30 East and Gulf Coast port dockworker contract expiration date now just one week away, the American Apparel & Footwear Association (AAFA) is calling on the Biden administration to intervene to avoid a potential strike.
AAFA president and CEO Steve Lamar sent the letter Monday, months after the association first pled with the president in March to help restart contract negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX). The talks resumed before being called off again in June, with both sides remaining at an impasse, making the prospects of a work stoppage more likely by the day.
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This time, Lamar pointed to the impacts of potential port strains on its members, saying “if they can get their product to market at all during the critical holiday shopping season, [they] will only be able to do so with massive delays and at exorbitant cost.”
“The apparel, footwear and accessories industry is dependent on imports to meet the needs of American consumers. In 2023, the East and Gulf Coast ports accounted for 53 percent of all U.S. apparel, footwear and accessories imports, amounting to over $92 billion (about $280 per person in the U.S.) in value,” Lamar wrote. “Again, this disruption would occur during peak holiday shipping season and raise the price of goods even higher, sending inflation skyrocketing. This potential shipping crisis will create a scarcity of goods, while goods that are still available will be costly for American families.”
This letter comes less than a week after the organization signed off on another letter led by the National Retail Federation (NRF), calling on the White House to immediately work with both parties to resume contract talks and ensure no disruption to port operations if a new contract isn’t reached by Oct. 1.
The Biden administration is reportedly shying away from invoking the Taft-Hartley Act, which would force both parties to continue working on a new deal for another 80 days after Sept. 30—thus likely averting a strike entirely. The administration hasn’t publicly given a position ahead of the contract deadline.
Republican lawmakers sent a letter to President Joe Biden Thursday urging the administration to aid in the negotiations and “utilize every authority at its disposal” to maintain the flow of goods if a strike indeed happens.
Although the trade associations and politicians alike have expressed their concerns, Douglas Kent, executive vice president of corporate and strategic alliances at the Association for Supply Chain Management (ASCM), noted that retailers he spoke to recently did not share the same fears.
“They’re telling me the majority of those goods are already here. The buying pattern for the Christmas holiday, it keeps creeping in earlier. People are already buying early, so the inventory is here early. I think they have optimism that there’s going to be a relatively swift resolution,” Kent told Sourcing Journal. “Why we emotionally are feeling like we’re so optimistic, it baffles me, but most of them don’t seem to be that worried about it.”
Kent noted that the optimism shippers likely stems from last year’s West Coast contract resolution and the recent federal intervention in the Canadian railroad negotiations.
As it stands currently, industries including furniture sellers, automotive parts and accessories, semiconductors and medicines and vaccines have the most to lose by a shutdown at the ports, according to U.S. Census Bureau data of imports through the East and Gulf Coasts.
While apparel, footwear and other industries wait with bated breath on the possibility of a strike, the ports themselves are starting their prep for a work stoppage.
Individual terminal operators at the Port of New York & New Jersey, as well as two terminals at the South Carolina Ports, have implemented contingency plans to mitigate the impacts.
In New Jersey, APM Terminals Elizabeth has already extended gate operational hours from 4 p.m. to 7 p.m., with the operator saying it will ensure there are “sufficient levels of import pick up appointments to provide every opportunity possible to support cargo delivery.” Gate hours will go back to normal on Sept. 30.
The terminal also added a Saturday gate opening for imports for both Sept. 21 and Sept. 28.
Port Newark Container Terminal is also opening gate operations on Saturday, both for import cargo and empties. Importers are advised to pick up cargo prior to Sept. 30.
Both terminals will not accept exports on Saturday.
At the South Carolina Ports, Wando Welch and North Charleston Terminals also opened extended cargo hours for dry containers last Saturday, Sept. 21, from 6 a.m. until 5 p.m.
Future extended gate hours will be determined based on demand. is. Charleston marine terminals will continue to receive and deliver all import, export and empty containers through Sept. 30.
For the duration of any impact to regular gate hours, SC Ports will waive loaded container storage charges to the ocean carriers, and chassis billing will be paused for any units leaving from Charleston locations.
The USMX said in a Monday statement that it has made additional attempts to engage with the ILA. However, the USMX says the union has been unable to schedule a meeting to continue negotiations.
“There is no indication that the ILA is interested in negotiating at this time,” the USMX said.
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