Happy New Year logistics fans! We’re only a week into 2025 and there’s already so much to discuss. In this article we will talk about the East and Gulf coast strike and the latest on tariffs. Let’s dive into this month’s State of Freight!
ILA vs USMX STRIKE
In October 2024 the ILA (International Longshoremen’s Association), went on strike for 3 days to fight for higher wages and no automation for ports. They won the fight for higher wages, agreeing to a 62% wage increase over the next 6 years. The union also agreed to go back to work and extend the automation negotiations in their contract until January 15. That temporary hold comes to an end next week and negotiations on a firm contract resumed on 1/7. On Thursday, 1/8, a tentative agreement was finally reached and THE STRIKE HAS BEEN CALLED OFF!!
THE ILA ARGUMENT
The ILA is not wholly against automation. It will make our ports safer, more efficient and allow more imports and exports to flow smoothly through the supply chain in a timely manner. After all, the volume of US imports and exports has been growing significantly over the past few years and congestion is becoming more of a problem. The major issue the ILA has is with job security. When automation and technology take away jobs, American families suffer. That’s the bottom line in the ILA’s argument. They want to know that a machine is not going to take away their careers and put families in distress.
THE STRIKE AGREEMENT
The new 6-year contract allows for semi-automation but only if that automation requires human involvement. This means that no jobs will be lost and may even create more jobs. Full automation is still off the table right now, but semi-automation with the guarantee of job protection has settled the fears of the ILA.
TARIFF UPDATES
If only we all knew what to expect. Importers of foreign goods are currently in limbo wondering what 2025 will bring when it comes to tariffs. The very latest rumor in the mill is that president elect Trump intends to declare a national economic emergency when he comes into office. This would be the easiest and fastest way to push through tariffs without having to go through lengthy legal permissions and approvals. Under the IEEPA act, a president has full authorization to manage large groups of imports during a national emergency. This is just the latest option president elect Trump is considering. But what will the tariff’s look like? We don’t really know yet. We’ve heard a number of different tariff plans and amounts for overseas imports but no firm plan of action. Importers are bracing for the worst, but only time will tell what the actual tariffs may be. We know they are coming; we just don’t know what they will be and when they will roll out. As an importer of foreign goods, GPI pays close attention to the latest information and will keep you informed on any solid news. Until then, we try to prepare for the future as best we can. Only one thing is certain, tariffs are coming, and they will effect everyone’s bottom line, from manufacturers and producers, to retailers and consumers. We’ll keep you abreast as this fluid situation unfolds.
THE YEAR OF THE SNAKE IS HERE
Import volumes are high at all US ports as Chinese New Year quickly approaches in Asia. The Lunar New Year causes a blackout shipping period of 2 to 3 weeks as China shuts down for celebrations. This year is the year of the Snake and runs from January 29 to February 12 ending with the Lantern Festival. For over a month now, importers have been rushing to get their goods out of China before CNY. The threat of tariffs and strikes in the US has compounded this rush sending copious amounts of goods across the ocean. Despite the high volumes, US ports are moving goods quickly and efficiently through customs and getting them on their way to warehouses across America. GPI is not seeing delays on any of the coasts at this time. Cheers to the hard-working port workers for making this happen! Transit times for Asia to US East Coast ports is about 42 days and 17 days to west coast ports. Mid country destinations such as Chicago and Michigan are seeing transit times of about 29 days.
Happy New Year to all! Let’s make 2025 an unforgettably prosperous year despite the obstacles placed in our way!
