The International Longshoremen's Association (ILA) strike has entered its second day, impacting ports along the East and Gulf Coasts and causing significant ripple effects across multiple industries. CEO and president of the American Trucking Associations, Chris Spear, joins to discuss the situation and its impact on the trucking sector.
Spear notes that although the strike just began, it's already having immediate consequences for the trucking industry. He says that approximately 62 container ships, carrying nearly 500,000 containers, have been diverted from their intended East and Gulf Coast destinations. This sudden decrease in supply and inventory to transport is promptly affecting trucking operations.
"This is just a pure lack of leadership," Spear asserts, calling for intervention from political officials. He elaborates: "It is the responsibility and job of the president of the United States and this administration — the vice president, the acting secretary of labor — to actually mediate. To bring these parties to the table when they can't reach an agreement. They haven't met since June, and you have the president out there saying, 'Oh, it's collective bargaining.' Well, that's true if they're actually talking. You've got to bring them together to solve pay, automation, and other outstanding sticking points. These issues aren't going to get resolved unless this president steps up to the plate and actually provides the leadership needed."
It is day two of the International Longshoremen's Association Union strike at Eastern Gulf Coast ports. Repercussions are rippling into industries across the country, and one of those is trucking. And joining us now is Chris Spear, CEO and president of American Trucking Associations. Chris, it is good to see you. So, let's dig right into the strike, Chris. I'm curious, you know, the impact, the ripple effects you're seeing in in your industry, the trucking industry.
Well, Josh, we're not even two days into this strike, and we're already seeing 62 container ships scrambled that were inbound at Eastern Gulf Coast ports carrying nearly 500,000 containers. My industry moves, as an example, 12,000 of those boxes a day at New York, New Jersey. Uh, we're already tracking multiple ports and seeing the activity diminish in Savannah and Houston, 100% shutdown in activity for trucks. If you go a little further out in Savannah, you're seeing truck activity and warehousing down 60%
as those supplies and inventories begin to deplete in Houston, 20%, but obviously more warehousing there than in Savannah. So we're seeing the activity, uh, really quickly unfold and probably by through this weekend, if this strike continues, those inventories will be gone.
Chris, do you want to see politicians get more involved?
This is just a pure lack of leadership, Josh. I mean, it is the responsibility, the job of the president of the United States and this administration, vice president, acting secretary of labor to actually mediate, to bring these parties to the table when they can't reach an agreement. They haven't met since June. And you have the president out there saying, oh, it's collective bargaining. Well, that's true if they're actually talking. You got to bring them together to solve pay, automation. The sticking points that are outstanding aren't going to get resolved unless this president steps up to the plate and actually provides the leadership needed. The problem with that, Josh,
this administration, this president have already taken a side. They've walked the picket line for UAW. They basically said they are in the pocket of big labor. Well, if you're USMX representing 36 ports that are now on strike, you literally have no incentive to come to the table if it's being mediated by this administration because they've already shown their cards. So this impasse could go on indefinitely without somebody with credibility brokering this deal. You better brace for this. We are, and it's going to be impactful.
Hasn't Chris though, the White House gotten involved to some extent, holding meetings? Are you suggesting it's just not getting enough done?
They they they touched gloves with each party. The parties did not meet. And they already knew what the parties were going to tell them. And as of Monday night, USMX put 50% pay increase on the table for the union. The average pay for an ILA worker is $150,000. You have crane workers making over $300,000. Now I'm not saying 50% or what they're asking for, 77% is is justified. Well, you're talking on a $300,000 salary, nearly half a million dollars a year, if that were to be granted. So this is about greed. This is not taking into the interest everyone in North Carolina, Tennessee, Virginia, Georgia, Florida, who are suffering and uncovering their communities from mud and water.
I don't think they really care right now about somebody whining for $500,000 a year. So there's a disconnect here. This administration better start focusing on real America and not union bosses.
What about Hurricane Helene and its aftermath, Chris? There, how has it impacted, uh, the trucking industry?
Significantly, and I'll tell you why. Usually in Florida, after a hurricane, our trucks are pre-positioned with aid and could probably be on the ground at site within hours. The problem we're having in say, North Carolina, Tennessee is that these communities are served by roads that have been completely washed out or covered by mud. So the infrastructure is so badly damaged, we can't even penetrate the circumference of that area. So a lot of the aid that's now going in is is being flown in. So that's not a way that you're going to rebuild quickly. So it's a very complicated environment. Now compounded by the fact that we have 36 ports that are now shut. So, you know, we're talking North Carolina. There's a lot of port activity that would be providing aid that's not happening now. So this is the worst time for this to happen.
Chris, it is great to have you on the show. Thank you for sharing your perspective. Appreciate it.
Thank you, Josh.
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This post was written by Angel Smith