.png)
By Javaughn Keyes
Jamaicans are being told to brace for delays to their shipments coming out of the US, based on the strike action taken by dock workers on the US East and Gulf Coast.
At least 25,000 workers represented by the International Longshoremen's Association walked off the job on Tuesday, after talks for a new contract for higher wages failed.
This is the first strike in that area in 47 years, and reports are that about half of goods going into the US, and two-thirds of exports will be impacted by the walk-off affecting 14 ports, running from Austin to Houston in Texas.
Here in Jamaica, port operator Kingston Freeport Terminal Limited says this development poses significant challenges, as the US is one of the country's major trading partners, particularly through some of the affected ports.
KFTL says to reduce potential disruptions and maintain the flow of commerce, it is not accepting additional cargo bound for the US.
This is aimed at preventing congestion and preserving operational efficiency.
The company says the duration and scale of disruption will largely depend on the length of the strike.
Reports are that each day of industrial action could cost the US economy some US$5 billion.
In the US value chain, the strike is impacting the movement of all types of containerised shipments, from food to equipment.
KFTL says Jamaicans should expect shipments to the US East and Gulf Coasts to be delayed.
Imports from the US to Jamaica will also be affected.
Local importers and exporters are being encouraged to where possible consider airfreight, which however comes at a significantly higher cost.
Exporters may look at alternative routes via the West Coast, though these options will be limited by capacity constraints and higher costs.
The strike comes as a major blow, as both manufacturers and exporters are looking to bring in goods and supplies for the Christmas period, and also meet early orders overseas.
???????
comments powered by Disqus
All feeds
