If the strike continues, shipments would wish be rerouted to US West Coast or Canadian ports, resulting in greater prices and longer transit occasions, which can lead to elevated costs for customers, it mentioned.
This might add to Indian exporters’ woes who’re already dealing with greater freight prices and delays attributable to disruptions within the Pink Sea route. Each these will power ships to take a for much longer route and this detour would improve journey time and prices by 2.5-3 occasions, including hundreds of additional kilometers for inside transport inside the US, the assume mentioned.
Round 25,000 dockworkers at US East Coast and Gulf Coast ports have been on strike since October 1, shutting down 14 main ports, together with New York/New Jersey, Baltimore, Miami, and Houston.
As per the report, the variety of container ships ready to unload has jumped from three to 45, and the backlog may double by the top of this week, doubtlessly taking weeks and even months to clear. The strike is costing the U.S. economic system an estimated $4.5 billion to $7.5 billion per week.
“The strike is lower than 48 hours previous and is already inflicting delays in unloading and processing of shipments from India, affecting items like textiles, prescription drugs, and auto components,” mentioned GTRI founder Ajay Srivastava.The Worldwide Longshoremen’s Affiliation (ILA) is pushing for important wage will increase and a ban on automation, whereas the US Maritime Alliance (USMX) has provided an almost 50% wage hike over six years. Talks are ongoing, however no deal has been reached. The US authorities is monitoring the state of affairs however has not stepped in.
