The resumption of the strike at Canadian ports may push up prices on the US line? The US "last mile" supply chain also has the risk of thunderstorms!

The strike of port workers on the west coast of Canada has been quelled and is expected to cause a price increase on the US line.

Negotiations between UPS and the International Brotherhood of Teamsters are at a stalemate and on the verge of collapse, and the risks of the last-mile supply chain continue to rise!

 

Just when the outside world thought that the 13-day strike of port workers on Canada's west coast would finally be resolved with a consensus between labor and management, the union announced on Tuesday afternoon local time that it would reject the settlement terms and resume the strike.

 

 

 

The head of ILWU Canada announced that its caucus believes the settlement terms recommended by a federal mediator will not protect workers' jobs now or in the future.

 

Unions have criticized employers for not addressing the cost of living issues workers have faced over the years despite achieving record profits in the past few years.

 

The unions claim that they must be able to redefine the uncertainty of global financial markets for their members.

 

The Maritime Employers Association accused the union's caucus leadership of rejecting the settlement agreement before the full union membership voted, saying the union's move was further harm to Canada's economy, its international reputation and the Canadians whose livelihoods depend on stable supply chains.

 

The association said the four-year agreement promises a 10% increase in wages and benefits over the past three years.

 

 

In British Columbia, Canada, on the Pacific coast, about 7,500 workers at more than 30 ports have been on strike since July 1, Canada Day. The key conflicts between labor and management are wages, outsourcing of maintenance work, and port automation. The Port of Vancouver, Canada's largest and busiest port, is also directly affected by the strike.

On July 13, before the final negotiation deadline set by the federal mediator for the settlement terms, labor and management announced their acceptance of the mediation plan and reached a temporary agreement to resume normal port operations as soon as possible.

 

Some chambers of commerce in British Columbia and Greater Vancouver expressed disappointment with the union's decision to restart the strike.

 

The Greater Vancouver Board of Trade once stated thatThis is the longest port strike the agency has encountered in nearly 40 years. The previous 13-day strike affected an estimated 10 billion Canadian dollars (about 7.5 billion U.S. dollars) in trade.

 

Analysts believe that the resumption of the Canadian port strike is expected to cause more supply chain disruptions.There is a risk of exacerbating inflation, and at the same time it has a certain effect on pushing up the US line。

 

Vessel position data from MarineTraffic showed that as of the afternoon of July 18, six container ships were waiting near Vancouver and no container ships were waiting in Prince Rupert, with seven more container ships expected to arrive at both ports in the coming days.

 

During the previous strike, several chambers of commerce and the premier of Alberta, an inland province east of British Columbia, called on the Canadian federal government to intervene and end the strike through legislative means.

 

 

Huifeng International Freight Forwarding would like to remind all customers

If you have cargo delivery needs recently, it is best to speed up the delivery to avoid the secondary impact of the strike.

You can consult us and develop a response plan

We have the latest and most comprehensive industry information to protect your goods and timeliness!

It's not just Canadian ports that are in danger of a strike. The threat of a serious strike is reportedly imminent as contract negotiations between UPS and the Teamsters, the union representing the company's 340,000 American truck drivers, broke down on July 12.

 

 

 

According to reports, about 97% of UPS members of the Teamsters Union have voted to strike.They will go on strike if the agreement is not ratified before the deadline on July 31.

 

UPS is urging Teamsters negotiators to return to the bargaining table, where a key issue is increasing wages for part-time workers, who make up about half of UPS's workforce.

 

Long-term part-time workers are particularly frustrated because they earn only slightly more than new employees hired at high prices in a tight labor market during the pandemic. But union officials say UPS needs to provide better treatment to workers who risked their lives during the pandemic to help the company generate huge profits.

 

Stifel analyst Bruce Chan said in a recent report that UPS faces two unattractive options: risk a strike and losing customers, or acquiesce to the Teamsters’ demands, which could exacerbate the company’s labor cost disadvantage relative to rivals in an economic downturn.

 

“Both scenarios would be painful for UPS, so it may just be a question of when and how the company wants to choose,” Chan said.

 

 

 

Last year, UPS delivered about 21 million packages nationwide every day.The UPS strike could have a significant impact on U.S. consumers and global e-commerce companies.。

 

A think tank specializing in studying the economic impact of industrial action said on Thursday thatUPS strike threatens to be 'one of the most expensive in at least a century'", with the 10-day strike causing losses exceeding $7 billion.

 

Michigan-based Anderson Economic Group (AEG) estimated that the UPS driver strike cost customers about $4 billion and more than $1 billion in direct wage losses.

 

The last major strike by UPS workers was in 1997, when a 15-day stoppage cost UPS $850 million and sent some customers to competitors such as FedEx.

 

At present, the risk of supply chain failure in the last mile of the US line is becoming more and more seriousHuifeng would like to remind all sellers to pay attention to the latest developments of related events.You can consult Huifeng and develop corresponding targeted alternative plans to mitigate the negative impact of potential supply chain disruptions on logistics business to avoid unnecessary losses.

 

 

 

Shipping times are expected to slow down during the strike as carriers like FedEx and the U.S. Postal Service use up capacity to handle the volume of packages coming from UPS customers.FedEx said last week it would prioritize existing customers in the event of any disruptions.This means that it may become more difficult for UPS customers to send packages quickly.

 

Due to the setbacks and poor operation of cargo transportation, the cargo may not be shipped in time within the agreed period and will be stranded in large warehouses or logistics centers, resulting in longer and longer detention time. More and more stranded cargo may cause some warehouses to be overwhelmed, soFedEx's transportation capacity is overloaded and it is difficult to guarantee the delivery time.This causes the goods to be temporarily detained.

 

To mitigate the impact of the strike, some UPS customers may have certain items shipped toTransfer to Fedex, USPS and other logistics delivery companiesThis move will inevitably lead to an increase in logistics and transportation costs, or additional expedited shipping fees if delivery time is extended.In addition, sellers will also need to bear additional costs, such as compensation measures due to delayed delivery or detention fees caused by being required to re-ship.

 

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