The Federal Mediation and Conciliation Service (FMCS) has issued a news release on labor negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX). They have agreed to an additional extension of 30 days until January 28, 2013, during which time the parties shall negotiate all remaining outstanding Master Agreement issues, including those relating to New York and New Jersey.
The ILA and USMX subsequently agreed to further extend contract negotiations through February 6, 2013 and push back the contract extension date included in the FMCS press release. This agreement averts possible port strikes along the US East and Gulf Coasts during the ongoing negotiations.
At Leo, we will continue to closely monitor the situation and do everything possible to minimize the effects on our clients. In case negotiations fail, we are presently formulating a feasible contingency plan so that we are still able to offer an alternative solution to our clients. For example, instead of shipping to a US East Coast port, we can ship the goods to a US West Coast port and then use land transit to deliver the goods to the final destination.
In the meantime, you may browse the
FMCS website for more details. We will keep you informed if there are any further updates in order to minimize any potential effects.