Despite the recent announcement of the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) having successfully reached a preliminary agreement, other supply chain threats are still emerging. The reason for is because over 99% of ILWU Canada union workers in West Coast ports, including Vancouver and Prince Rupert, have voted in favor of a strike. A 72-hour notice must be filed by June 21, for a possible strike date set to begin on June 24. The Port of Vancouver, handling 90% of Canadian cargo, and the Port of Prince Rupert, serving as a key U.S. rail link, will be significantly impacted. The labor tensions coincide with disruptions at U.S. West Coast ports, potentially leading Canadian shippers to consider the Port of Seattle. However, the Port of Seattle has already experienced significant disruptions. Supply chain concerns are increasing, with cargo delays and congestion at ports. The situation is further complicated by low water levels at the Panama Canal, making alternative trade routes more challenging.
West Coast ILWU and PMA Tentative Agreement:
No updates have been released on the status of the agreement except that the process to explain the details to the respective members of the ILWU and PMA will begin while leadership urges its members to ratify the negotiated agreement. Please note that the Canadian threat to strike discussed above is for a different group of workers than those that fall under the West Coast ILUW and PMA tentative contract agreement announced yesterday, June 15th.
Noatum will continue to monitor the situation and work hard to release quick and accurate information as received.
If you have any questions, please contact your local Noatum Logistics representative.