Retailers and other shippers in the US are mulling contingency plans in the face of a brewing dockside labour dispute which could shut down container terminals this autumn.

Building up inventories is one of the most favoured options. Most speculation centres on re-routing cargo to the West Coast, according to reports.

The current contract between the International Longshoremen’s Association (ILA) and companies that operate marine terminals on the US east and Gulf coasts expires at the end of September.

The ILA opposes automated cargo handling gear replacing its members. It also insists that the ILA continues to maintain and repair chassis even as ocean carriers put the equipment in pools, or turn it over to third-party managers. The union also demands that marine companies do a better job of monitoring overweight containers for safety and royalty reasons.

Another option being considered is to order shipments earlier, especially for sales, seasonal and popular merchandise, and store them in warehouses as insurance in case ocean transport is disrupted, said Mr Ronald Marotta, Vice-President of Yusen Logistics (Americas).

Source : Exim News Service - NEW YORK, June 21