American Trucking Associations President and CEO Chris Spear says he is very concerned about the impact the port workers’ strike will have on trucking and the economy.
Major automakers are closely monitoring the port strike affecting the East and Gulf coasts, and have implemented contingency plans to minimize its potential impact on production.
For the first time since 1977, the International Longshoremen’s Association (ILA) and its 45,000 workers went on strike at several ports that collectively handle nearly half of the nation’s ocean freight. The union is seeking better wages and restrictions on port workers, and the talks are at odds with the US Maritime Alliance (USMX), which represents port employers.
The PRESIDENT of the ILA, Mr. Harold Daggett, has shown that the union is determined to continue its strike to get its demands even if that means it will cause great damage to the American economy. “I’m going to cripple you,” Daggett said of the strike’s effects in an interview in September. “I’m going to paralyze you, you don’t know what that means. No one.”
Although the strike has just started, it is in a position to threaten the production of cars as the East and Gulf Coast ports are the leading places for the purchase of car parts from other countries. Delivery delays may affect automakers’ inventory levels and may hinder the availability of critical parts. As a result, automakers are exploring alternative shipping routes, expanding sourcing and adjusting production schedules.
DOCKWORKERS CONTINUE PICKETING: WHAT TO DO TO END THE PORT STICK
Eastern and Gulf Coast ports handle the largest volume of shipments of automobiles and auto parts, particularly the Port of Baltimore. (Photo by Kevin Dietsch/Getty Images / Getty Images)
Here’s how leading automakers are handling the current situation:
Stellantis
“Stellantis is closely monitoring the situation at several US ports. The company is taking the necessary steps to minimize any potential impact on production or our ability to deliver vehicles to our customers. There has been no impact on our operations at this time,” a Stellantis spokesperson told FOX Business.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| VLVLY | VOLVO AB | 25.79 | -0.10 |
-0.39% |
| STLA | STELLANTIS NV share price | 13.64 | -0.07 |
-0.47% |
Volvo
“Regarding the strike, we have been monitoring the situation for several months, and we are updating our teams every day. We have a team working to minimize the impact on our production and aftermarket support as much as possible. Their work has included identifying what is important to our production and aftermarket support. , we are working to secure additional stock in advance, we are working together and supply partners for their emergency plans, as well as finding alternative transportation routes,” a Volvo spokesperson told FOX Business.
PORT STRIKE: HOW MUCH DOES A UNION MANAGER MAKE A TAX?
The ILA union is demanding higher wages and protection from automation in its proposed negotiations with port employers. (Photo by MAKA FELIX/AFP via Getty Images/Getty Images)
Ford
“Regarding the port strike, we are closely monitoring the situation, but it is too early to speculate on the potential impacts, if any,” a Ford spokesperson told FOX Business.
GM
“We are closely monitoring the situation and have contingency plans in place. We will continue to work to minimize any significant impact on our operations and will make adjustments as needed,” a GM spokesperson told FOX Business.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| F | This company FORD MOTOR CO. | 10.47 | -0.28 |
-2.60% |
| GM | This company GENERAL MOTORS CO. | 44.81 | -0.06 |
-0.12% |
| TM | Company Toyota MOTOR CORP. | 180.49 | +2.60 |
+1.46% |
Toyota
“We are closely monitoring the situation and are developing ways to minimize any impact on our customers and dealers,” said a Toyota spokesperson in a statement sent to FOX Business.
The ILA strike affected Eastern and Gulf Coast ports from Maine to Texas. (Photo by Spencer Platt/Getty Images/Getty Images)
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