Labor disputes at US and Canadian ports continue! Global supply chain hit again!

According to foreign media reports, the ongoing labor disputes at US and Canadian ports will disrupt the operation of the global supply chain. Although a temporary contract agreement has been reached at US West Coast ports, this does not mean that the supply chain disruption is over. Retailers are closely watching the labor disputes at Western Canadian ports and the potential strike of UPS express truck drivers in the United States.

In Canada, large-scale strikes broke out at the country's two busiest ports, the Port of Vancouver and the Port of Prince Rupert. Workers at the two ports have been on strike since July 1.

In the United States, negotiations between UPS and the International Brotherhood of Teamsters, which represents 340,000 drivers, broke down early Wednesday morning, raising the prospect of one of the largest strikes in the country's history. The contract between the two parties expires on July 31, and if no agreement is reached before then, the 340,000 truck drivers are preparing to strike on August 1.

“The port strikes affecting Vancouver and Prince Rupert should not have a significant impact on the U.S., but could affect some U.S. retailers whose goods come in through Canada and could have potential knock-on effects on other ports,” said David French, NRF’s vice president of supply chain and customs policy.

“However, if UPS and the truckers do not resolve their differences before the contract expires, the ability for goods to move from U.S. ports to stores could be impacted. We urge both parties to return to the negotiating table and work toward a final agreement without disruptive activity. Supply chain stability is critical for retailers as we enter the peak shipping season for the winter holiday season,” added David French.

Import cargo volumes at major U.S. container ports this summer are expected to climb to a peak in August, according to the latest monthly Global Port Tracker report from the National Retail Federation (NRF) and Hackett Associates.

The report showed that U.S. ports handled a total of 1.93 million TEUs (a 20-foot container or its equivalent) in May, up 8.5% from April but down 19.3% from the same period last year.

The report does not include data from the Canadian ports of Vancouver and Prince Rupert because not all cargo from those ports is destined for the U.S. But the two ports reportedly handled more than 185,000 TEUs in May, accounting for about 9% of total container imports at U.S. and Canadian ports.

“Gross domestic product growth was revised upward to 2% in the first quarter, with consumer demand solid,” said Ben Hackett, founder of Hackett Associates. “While consumers continued to spend, retailers and wholesalers reduced inventories.”

Ports have not yet reported June data, but Global Port Tracker forecasts 2.03 million TEU for the month, down 10.1% year-over-year and the first month to reach 2 million TEU since October last year. In the third quarter, major U.S. container ports will handle 5.9 million TEU, down 8.3% from the first half of 2022.

Editor ✎ Nicole/

Disclaimer: This article is copyrighted and may not be reproduced without permission.