A deadline of Oct. 1 for a new deal between port workers and ownership is approaching, and after talks broke down during the summer, tensions are high.
Largest port on U.S. East Coast, New York/New Jersey, begins prepping for what could be first union strike since 1977Port of New York/New Jersey executives tell CNBC they are preparing for a complete work stoppage by the International Longshoreman's Association, the largest union in North America.
Beth Rooney, director of the Port Authority of New York and New Jersey, told CNBC on Thursday that individual ocean carriers and terminal operators are announcing their ramping down of operations to avoid a pile-up of containers. The Port of New York/New Jersey has been involved in discussions with ocean carriers and terminal operators about managing cargo leading up to an interruption, ensuring appropriate measures are in place to complete cargo movements off the terminals before any shutdown.
The Biden administration has said it will not invoke powers under the Taft-Hartley Act to force union members to go back to work, as first reported by CNBC, and urged the parties to return to the bargaining table."We've never invoked Taft-Hartley to break a strike and are not considering doing so now," a Biden administration spokesperson told CNBC on Sept. 4.
In anticipation of additional freight, Port of Long Beach CEO Mario Cordero said it is equipped to handle an uptick in cargo if a labor strike at the East and Gulf Coast ports does occur. The month of August was the port's strongest month in its 113-year history, with imports surging 40.4% year over year and exports rising 12% YOY.
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