Ports are a key factor in turning the world's economies around. Memories of the problems created at ports are still very clear. international supply chains by Houthi militia attacks in the Red Sea, not to mention the supply bottleneck created in the post-Covid era. Now to raise international trade concerns is the strike called in good 36 ports in the United States, bringing repercussions also on trade in the Mediterranean, including Italy, considering that the USA is Italy's first trading partner outside of Europe.
Losses estimated at nearly $5 billion per day
Since yesterday first october workers of Ben are on strike 36 ports located between the East Coast and the Gulf of Mexico. The abstention from work, the first since 1977 and just over a month away US presidential elections, was proclaimed by the'International longshoremen's association (Ila), involves approximately 45 workers and will paralyze the activities of ports capable of handling between 40 and 50% of the volumes of all US ports. The Prevention in volume in a month, could reach 2 million containers, with daily losses that JP Morgan estimates between 3,8 and 4,5 billion dollars.
Supply problems will weigh on prices. The eyes of the Fed and the ECB
Based on duration of mobilization the extent of the impact on the supply chains on a global level with the consequent shortage of consumer and industrial goods and a price increase: the situation is also monitored by Fed and ECB who are struggling to control inflation. A strike of one week could have consequences for a month in disposal of the accumulated goods, so a prolonged stoppage risks having even more serious effects. "We are ready to fight for as long as necessary, to strike for as long as necessary", assured the leader of the Ila, Harold Daggett, who hopes to achieve the same successes recently enjoyed by the United Auto Workers union. Just before calling the strike, dockers rejected an offer with a 50% increase in salary in six years, considering it inadequate: the union was in fact asking for a del% increase 77 just to sit at the negotiating table. The outgoing President Joe Biden has already declared that not wanting to intervene to stop the protest.
The ports and products involved
I ports involved include New York and New Jersey, the nation's third largest by volume of cargo handled, but also includes other ports such as Wilmington, Delaware, which, for example, are central to some products such as banane. Consequences also on other products such as wine and beer, but also on others raw material used by US food manufacturers, such as the cocoa and sugar, as well as in the sector of furniture and household appliances.
The problems of the Mediterranean and the port of Genoa
“With the strike, every week, it is estimated that, worldwide, there will be around 500 thousand containers that will not be able to disembark or reach their final destinations. A very serious damage to the US economy, to its consumers, but also to exporters, which will certainly see the increase freight costs already in the next few weeks” says Giampaolo Botta, general manager of Spediporto, the association of freight forwarders in Genoa. According to Spediporto, the Mediterranean ports will also suffer heavy repercussions: “around 71 thousand containers are at risk every week, in both directions, on the axis with the eastern coast of the United States”. A country that, for the port of Genoa, “represents an essential reference: the latest data available from the Port System Authority, referring to 2022, speak of 336 thousand containers moved between loading and unloading. A figure higher than that linked, for example, to all European destinations”. According to the president of Assarmatori, Stefano Messina, “the country that will be hit the hardest will be export, since the US is the main recipient of the Made in Italy, outside the European Union, and the second country overall, after Germany.
The alternatives: West Coast or Canadian ports or cargo plane
To try to stem the problems, shippers are trying to find alternatives to transport. “An alternative solution, the most popular at the moment, is to use ports on the West Coast or in Canada, but operators are also focusing on air cargo and more accurate management of stocks, to avoid interruptions in the supply chain”.
