Retailers Press for Early Settlement of Longshoremen's Contract
The Retail Industry Leaders Association urged the International Longshoremen's Association and the U.S. Maritime Alliance to agree on a contract well in advance of the Sept. 30 deadline in order to prevent a disruption to the flow of goods and the lasting economic effects that would result, it said in a July 10 letter. The negotiations affect 14 East and Gulf Coast ports, accounting for 95 percent of all containerized shipments to the Eastern seaboard.
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A potential disruption would be destructive to the retail industry's ability to deliver their goods to consumers in a "just in time" fashion, RILA said. It could result in "lost sales and aggravated customers," said RILA President Sandy Kennedy. A work stoppage would be most harmful, but if the parties fail to reach an agreement well in advance of the Sept. 30 deadline, retailers will be forced to redirect shipments in order to avoid an interruption in the flow of goods, RILA said: "In the absence of certainty over the outcome of the negotiations and facing the real possibility of a September stoppage, retailers have no choice but to continue planning for a shutdown. ... Some of our members advise that they are beginning to redirect their supply chains in order to allow adequate lead time to ensure that customer needs can continue to be met, regardless of whether the negotiations are successfully concluded by September 30."