Shippers avoiding US East Coast over anticipated port strike: Shippers are bypassing ports on the US East Coast and Gulf of Mexico, fearing another dockworker strike if the labor union does not land a new contract by the 15 January deadline, Reuters reports. “Anything we expect that we need in the back half of January, we're effectively diverting to the West Coast,” said Chris Peterson, CEO of Graco high chair and Crock-Pot cooker maker Newell Brands.

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ICYMI- The United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) — representing nearly 50k dock workers at over 30 ports stretching from Maine to Texas — called a strike earlier this month that lasted three days over a six-year contract that ended on 30 September. The ILA pushed for higher wages and a rollback of the language on automation.

So what happened? The ILA and USMX agreed to give workers a wage hike by 62% over six years and restarted work at 36 affected ports; however, some issues remain, including concerns around the increasing automation of ports, which the union believes puts jobs in jeopardy.

What’s next? The union plans to return to negotiations next month, though shippers doubt an agreement can be reached without halting work at key ports like in New York, New Jersey, Houston, and Savannah.

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