NASSAU, BAHAMAS — As the strike by union dockworkers causes widespread disruptions at East and Gulf Coast ports, Dion Bethell, CEO and Chief Financial Officer of Arawak Port Development, Nassau’s main commercial shipping port operator, cautioned that this evolving situation is something to monitor closely, especially if it prolongs.
Bethell told Eyewitness News: “Certainly, there will be concerns about this issue. Right now it’s a bit early. The challenge would be for those carriers that use a unionized facility, as they won’t have any labor to work their vessels. That will be a challenge until they can resolve their union issues. Those carriers that use a non-unionized facility still have scheduled vessel calls and will be servicing the market with the cargo that goes on their vessels.”
“I would say it is something to watch carefully. One particular carrier has about 50 percent of the market and uses a non-unionized facility. They can bring in additional cargo if it shifts from the other carriers that have a unionized facility and can’t get cargo out. They come in three times a week and bring in most perishables. The issue would be the global cargo, steel, and lumber from Europe and Asia that go to the US first and then come to us.
“My understanding is that many large wholesalers in the US would have increased their inventory, so how this plays out is also dependent on how much food supply we have on the island before we begin to feel some kind of pinch. I know at one point local wholesaler had a target of about a three-month supply. I don’t know if we can withstand a three-month standoff. Every day you lose means that fixing the broken supply chain takes about six days to establish itself. When you do the multiplier, you can get a good idea of how long it will take for things to get back to normal.”
In a statement yesterday, the government noted that the Ministry of Agriculture and Marine Resources, in collaboration with the Ministry of Energy and Transport and the Ministry of Economic Affairs, has been actively monitoring the recent port workers’ strike involving members of the International Longshoremen’s Association affecting the East and Gulf coasts of the United States.
“After engaging with key food suppliers in The Bahamas, including Super Value, Tropical Shipping, and AML Foods, we are pleased to confirm that the strike has not affected their food supply chains, and there is no disruption to the availability of food products in The Bahamas. The Davis administration is continuously in communication with our trade partners to ensure the supply chain remains stable, and we will keep a close watch on any developments. While we remain attentive, we are confident that the current situation poses no immediate risks to the flow of goods into the country,” the statement noted.
Tens of thousands of union dockworkers went on strike at East and Gulf Coast ports starting Tuesday in a labor dispute. The International Longshoremen’s Association (ILA) is the union behind the strikes. Founded in 1877 as the Association of Lumber Handlers, the ILA states on its website that the union today represents upwards of 85,000 longshoremen on the U.S. East and Gulf coasts, the Great Lakes, major U.S. rivers, Puerto Rico, eastern Canada, and the Bahamas. It is the largest union of maritime workers in North America.
The ILA strike comes as negotiations fell through between the union and the United States Maritime Alliance (USMX) for a new master contract agreement. The USMX represents employers in the East and Gulf Coast longshore industry, and the master contract guides subsequent local agreements at 14 East and Gulf Coast ports.
The ILA demanded the new contract include a significant wage increase, a higher starting wage, and premier health care benefits. Those negotiations were seemingly deadlocked last Thursday after USMX filed an Unfair Labor Practice (ULP) with the National Labor Relations Board requesting injunctive relief. Reports have suggested the port strike could cost the U.S. economy as much as $5 billion per day.
The situation could also prove detrimental for businesses going into the busy holiday shopping season, though retailers have accelerated imports in recent months to prepare for this. Over 170 organizations representing various impacted industries have called on the White House to bring both parties back to the negotiating table and avoid a strike.
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