The National Retail Federation is urging the International Longshoremen’s Association and United State Maritime Alliance to reach an immediate contract agreement before the Dec. 29 deadline to ensure a secure and dependable supply chain along the East and Gulf Coast ports.
The ILA and USMX have been locked in negotiations since their contract expired on Sept. 30. Assisted by the Federal Mediation and Conciliation Service, the groups will have another round of negotiations next week.
“We understand and recognize that there are tough issues that need to be resolved,” said NRF President and CEO Matthew Shay in the letter. “The issues will only be resolved, however, by agreeing to stay at the negotiating table until a final deal is reached. Failure to reach agreement will lead to supply chain disruptions which could seriously harm the U.S. economy.”
In its letter, NRF noted that supply chain stability has been seriously challenged over the past few months. Initially with the contract dispute at the East and Gulf Coast ports, then by Hurricane Sandy, which closed the Port of New York/New Jersey, and most recently by the eight-day strike at the ports of Los Angeles and Long Beach. In response to these challenges, many retailers have instituted costly contingency plans in order to avoid shipping disruptions and delays.
“Having a secure, long-term longshore labor contract in place is critical to ensure that the East and Gulf Coast ports continue to benefit from growing freight volumes,” Shay said. “Without such certainty, retailers and others will surely reevaluate their supply chains and their short-term and long-term reliance on these ports.”
For more, visit www.nrf.com.