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News Oct. 1, 2024

NRCA monitors dockworkers’ strike and potential supply chain effects

The International Longshoremen’s Association went on strike this morning, and construction companies are waiting to see how the situation will affect their businesses, according to ConstructionDive. The strike affects ports from Texas to Maine.

The International Longshoremen’s Association’s talks with the United States Maritime Alliance broke down over wages and a total ban on the automation of machinery important to dockwork, including cranes, gates and container-moving trucks. The strike is the first by the union since 1977 and affects ports that are some of the main points of entry for construction materials, heavy machinery, food, vehicles and chemicals. There also could be material delivery delays in other regions of the U.S.

Bill Flemming, senior vice president at consulting firm Cumming Group, New York, said the strike’s effects would be felt immediately in the construction industry. If the strike is longer than a week, it could cause weeks or months of delays as ships back up and distribution to warehouses and construction sites is impeded.

The damage caused by Hurricane Helene is exacerbating potential supply chain problems and may add to demand for items for repair or replacement that typically would arrive through East and Gulf Coast ports.

NRCA is monitoring the situation regarding potential supply chain issues and will keep members updated.

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