Wednesday, February 26, 2025

Supply Lines: Peace at US ports

The dockworker union that brought half of US container trade to a halt last October has voted to ratify a new labor contract with their empl
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The dockworker union that brought half of US container trade to a halt last October has voted to ratify a new labor contract with their employers. A union chief called the deal the "gold standard" for ports globally.

Nearly 99% of workers backed the contract, International Longshoremen's Association President Harold Daggett said in a statement, adding that "we now have labor peace for the next six years."

The ILA-USMX accord is good news for the importers, retailers and consumers on edge from the uncertainty surrounding the Trump administration's trade policies and tariffs. (Click here for the full story.)

"Retailers welcome this resolution to the supply chain uncertainty that has lingered along the East & Gulf Coast for some time," said Jess Dankert, supply chain vice president at the Retail Industry Leaders Association, whose members include Best Buy, Target and Home Depot.

Read More: A $2 Trillion Reckoning Looms as Ports Become Pawns in Geopolitics

Ports America CEO Matthew Leech said the deal is a win for both sides. "We have clarity on how we can use technology to drive efficiency and create value," Leech said. Ports America is the largest employer of ILA labor and a member of the US Maritime Alliance.

Automation Fight

The contract bans full automation, but crucially it separates that emotionally charged, job-replacing word from other types of technology that employers say is needed in order to improve the competitiveness at US ports.

"We can be more efficient and reduce hours, that's ok. But we can't take jobs that we currently have," Leech said. Rather than replacing longshore jobs, efficiency gains will allow for more throughput — and create even more work, he said.

Read More: Trump's Tariffs and Germany's Troubles Collide in Hamburg

In the video address ahead of the ratification vote, Daggett addressed a complaint from employers about the reliability of longshore labor.

"How can we fight against automation and then go and tell companies we are not going to show up? This has to stop," Daggett said. Employers also got assurances that ILA leadership would work with local chapters to address a lack of labor reliability port operators say introduces uncertainty and makes it hard to plan.

Read More: Maersk, MSC Go Head-to-Head in Hunt for Shipping's White Whale

Harold and his son Dennis Daggett have pledged to convene longshore labor groups from around the globe once the ILA-USMX contract is finalized. 

"This contract, when ratified, will become the gold standard among dockworker unions globally," Harold Daggett told members in a social media post last week.

Laura Curtis in Los Angeles

Click here for more of Bloomberg.com's most-read stories about trade, supply chains and shipping.

Don't Miss the Latest Trumponomics Podcast

Host Stephanie Flanders speaks with Joshua Green, national correspondent at Bloomberg Businessweek, and editor Laura Davison about the likelihood of a US shutdown, its consequences for the government and for Americans — and whether anything can stop Elon Musk's efforts to shrink the government.

Listen here and subscribe on AppleSpotify, or wherever you get your podcasts

Charted Territory

Dairy dominance | New Zealand's tourist industry needs to recover further if it is to regain its crown as the nation's biggest earner of overseas revenue. While foreign visitor spending surged 60% to NZ$16.9 billion ($9.7 billion) in the 12 months through March 2024, it still lags behind the dairy industry's NZ$21.1 billion of exports in the same period, according to government data released Wednesday in Wellington.

Today's Must Reads

  • Chinese President Xi Jinping called on officials to stay composed in the face of domestic and global challenges, signaling Beijing will take a measured approach to the Trump administration's new trade and investment restrictions. Meanwhile, on today's Big Take Asia podcast: Xi sat down with the once-shunned Jack Ma and his tech peers. What does it mean for the sector and their US rivals?
  • The club of finance ministers and central bankers who've steered the global economy through a quarter century of market meltdowns, recessions, wars and the pandemic meet this week facing new headwinds to their goal of broader prosperity — tariffs and the imminent threat of trade wars.
  • Copper futures surged after Trump  ordered the US Commerce Department to examine possible imports tariffs on all forms of the metal.
  • The European Union's resolve to take on the might of Silicon Valley is set to be tested to the limit after Donald Trump threatened retaliation for fines that hurt some of America's biggest companies.
  • South Korea's top trade official said he'll seek an exemption from US tariffs when he meets with Commerce Secretary Howard Lutnick in Washington this week. And Australian Treasurer Jim Chalmers said that he had "very constructive" talks with US Treasury Secretary Scott Bessent in Washington, and that they continued the conversation on tariffs.
  • A US trade group representing restaurants urged Trump to spare food and drinks from tariffs, estimating the levies could cost the industry more than $12 billion and lead to higher prices for consumers.

On the Bloomberg Terminal

  • Boeing appears poised for the largest delivery increase among airframers in 2025, with Bloomberg Intelligence calculations showing a 47% gain as strike effects fade and quality at Spirit AeroSystems improves. 
  • Vietnam's anti-dumping tariff on hot-rolled steel imports from China, effective from March 7, might have little impact as it's designed to be temporary. However, Vietnam may need to resort to more protectionism in the long term as China provides about 70% of Vietnam's steel imports, which threaten domestic production, according to Bloomberg Intelligence.
  • Run SPLC after an equity ticker on Bloomberg to show critical data about a company's suppliers, customers and peers.
  • Use the AHOY function to track global commodities trade flows.
  • See DSET CHOKE for a dataset to monitor shipping chokepoints. 
  • For freight dashboards, see BI RAIL, BI TRCK and BI SHIP and BI 3PLS
  • Click HERE for automated stories about supply chains.
  • On the Bloomberg Terminal, type NH FWV for FreightWaves content.
  • See BNEF for BloombergNEF's analysis of clean energy, advanced transport, digital industry, innovative materials, and commodities.

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