The Tribune

By ANNELIA NIXON

anixon@tribunemedia.net

Some Bahamian companies are remaining optimistic despite the International Longshoremen’s Association’s promised strike today, and they hold high hopes that the Biden administration will not allow it to be prolonged.

Despite the Biden administration stating last week they do not wish to intervene in negotiations between the United States Maritime Alliance and ILS who are battling over wage increases, CNN Business reported representatives from President Joe Biden’s team reached out to both parties over the weekend.

“This weekend, senior officials have been in touch with USMX representatives urging them to come to a fair agreement fairly and quickly - one that reflects the success of the companies,” Robyn Patterson, White House spokesperson said. “Senior officials have also been in touch with the ILA to deliver the same message.” 

James Sands, CFO of Lorene’s Shop and Derek Sands CEO of ShipX Worldwide both told Tribune Business that the Biden administration has to step in at some point, even if only to prevent an economic tragedy. 

“It can’t. I think the US government would step in because you’re talking about the whole east coast of the United States being affected, and that’s global trade and billions of dollars,” Mr Derek Sands explained. “So maybe it’s a short term thing, you know, within one week to get something going. But what they’re asking is really a significant increase in wages and, I mean, I understand because a lot of the ports, even as it relates to European ports and some of the global ports are already, digitalised and a lot of it has to do with work,, having jobs for a lot of those persons that work on the port but I don’t see it going on more than a week because it’ll be too detrimental.

“I guess because they’re thinking it’s an election year, they don’t want to decide and I guess that’s why it’s better for them to strike now because they know that someone has to get involved at this particular point in time. But just because of the revenue that’s going to be lost, the carriers are going to have to make a decision. It’s either going to be some of these profits go to them or they’re going to take a major hit, because every day a supply chain is impacted, it almost turns into almost like a week or two weeks process of catching up every day.”

With the idea that there’s no way to have a plan in a case like this, both Derek Sands and James Sands find solace in the belief that the strike, if it happens, will not exceed two weeks, which is doable. However, James Sands did express a little more concern as it pertained to holiday shipments. Being that multiple retailers experienced a shipment delay in some school uniform items during the summer, making it difficult for consumers to shop for back-to-school, another possible cargo delay due to a strike is a bit unnerving.

“We do a lot with dresses and our Levi’s and dockers,” James Sands said. “I mean, all those type of things are the biggest, I would say. We probably don’t have enough to take us through Christmas, but we have enough probably to get us close to Christmas.”

Derek Sands explained to Tribune Business that ShipX moves auction vehicles and pre-owned vehicles from the United States and for that reason he said “it doesn’t affect our market directly right away”.

“In the short term, the majority of our carriers won’t be affected and that’s just industry wide, except for the global carriers like MSC and Maersk and some of the other guys but as relates to a lot of the, the smaller island carriers, they’re not unionised, so they’re not going to be affected in the short term,” Mr Derek Sands explained. “But if we see this happening for more than a few days, of course it’s a chain reaction and that kind of slows down even us purchasing goods or clients purchasing goods out of Florida because that now affects supply chain.

“We may see delays, but we’re not going to be fully impacted because of some of the agreements we have. They’re not unionised and are not a part of the ILA. So, yeah, in some ways, where we do utilise cargo on other major carriers, those lines would be affected but for other cargo that we moved independently of those major lines, that cargo is not going to be affected.

“Yeah, so in the short term, it’s not a major effect, but what we’re really monitoring is the fact that supply chain could be really damaged and therefore, a lot of suppliers that our clients purchase from in South Florida could definitely have some issues with putting together orders and stuff in the next, you know, two to three weeks depending on how long the strike goes on.”

Derek Sands also noted that his customers are on edge, wondering what’s going to happen if the US dock workers follow through with the strike.

“I can only tell them based on, you know, monitoring the situation because it’s very fluid, but it seems like it’s going to happen and if it does, then we have to take it one day at a time but the longer it happens, the more effect it has on the supply chain.”