US East Coast port strike set to start Tuesday, says union
A port strike on the U.S. East Coast and Gulf of Mexico is set to begin on Tuesday, as announced by the International Longshoremen’s Association (ILA). This action arises from ongoing frustrations regarding wage issues, with the union accusing the United States Maritime Alliance (USMX) of failing to address decades of wage concerns. If the strike occurs, it will be the first coast-wide ILA strike since 1977, impacting ports that handle about half of the nation’s ocean shipping.
Negotiations appear to be stalled, with no discussions scheduled before the midnight deadline on Monday. While the strike is expected to disrupt the flow of various goods, including food and automobiles, the union has stated it will not affect military cargo or cruise ship traffic. The White House has been actively encouraging both sides to reach a fair agreement, with President Biden indicating he would not intervene to prevent the strike under the Taft-Hartley Act, which allows presidential intervention in labor disputes threatening national security.
The looming strike has raised significant concerns among businesses that rely on these ports for imports and exports, with the Business Roundtable warning it could cost the U.S. economy billions of dollars daily. The ILA has expressed that it will walk off the job if major employers, including container ship operator Maersk, do not agree to substantial wage increases and halt terminal automation projects. The situation remains tense, with both sides needing to find common ground to avoid a major disruption in supply chains just weeks before the U.S. presidential election.
Hurricane Helene: Infrastructure Devastation and Recovery Challenges
Hurricane Helene made landfall in Florida’s Big Bend region on September 26 as a Category 4 storm, causing widespread devastation across the southeastern United States. The hurricane brought destructive winds, torrential rains, and severe flooding, leading to extensive power outages and closed roadways in Florida, Georgia, and the Carolinas. Estimated economic losses exceed $100 billion, posing significant challenges for businesses reliant on trucking during a crucial freight season.
Transportation shutdowns have affected several key regions, including Florida (Monticello, Tallahassee), Georgia (Augusta, Columbus, Savannah), North Carolina (Asheville), and South Carolina (Greenville). Over 400 roads in North Carolina were closed, isolating communities and disrupting essential services like water, gas, and communication. Many gas stations shut down due to power outages and fuel shortages, crippling logistics operations and spreading diesel shortages across Florida and neighboring states.
The storm caused over 2.5 million power outages across eight states, with Georgia and Florida suffering the most damage. Recovery efforts have faced challenges from flooded roads and communication blackouts, leaving many residents cut off from loved ones.
Montreal Port Workers Set to Strike Over Wage Dispute
Two major terminals at Montreal Port, operated by Terminal Termont Inc., will close next week due to a three-day strike by 1,200 dockworkers starting September 30. The workers, represented by the Port of Montreal Longshoremen’s Union, have been without a collective agreement since December 31, and negotiations over wages and work-life balance have reached an impasse. Operations are expected to resume on October 3.
In response, the Montreal Port Authority has implemented a business continuity plan to minimize disruptions, as approximately C$6 billion ($4.4 billion) worth of goods are set to arrive in the coming weeks. The Montreal Port, Canada’s second-largest container port, consists of four terminals, with two terminals operated by Montreal Gateway Terminals Partnership remaining unaffected by the strike. This labor action coincides with potential strikes at major U.S. East Coast and Gulf Coast ports and follows a recent strike by grain workers at Vancouver Port.
CSX’s former Clinchfield Railroad barely recognizable after historic flood
Hurricane Helene has severely impacted the former Clinchfield Railroad mainline operated by CSX Transportation, with extensive flooding causing widespread damage. Emergency responders are struggling to access affected communities due to high waters, and several roadway and railroad bridges have been compromised or destroyed. The Blue Ridge Subdivision and much of the Clinchfield line are likely to remain out of service for an extended period, with full assessments of the damage expected to take several days.
Widespread destruction is reported along a 44-mile stretch between Erwin, Tennessee, and Spruce Pine, North Carolina, including the loss of a 375-foot bridge over the Nolichucky River. The flooding has raised water levels significantly, impacting train operations, especially for coal and merchandise trains that rely on this route. CSX may need to reroute traffic via alternative corridors.
Over 20 inches of rain fell in western North Carolina and eastern Tennessee, intensifying the flooding effects due to the narrow river valleys. Norfolk Southern also reported damage along its railway in the region. While no additional rain is expected, elevated water levels remain a concern, with the National Weather Service deeming this the most significant weather event in the area’s modern history.
Bill that could hinder warehouse growth in California signed by Newsom
Gov. Gavin Newsom has signed AB98 into law, which will slow warehouse construction in California and introduce a new approval process for truck routing. The law establishes regulations limiting warehouse siting, mandates local governments to create truck routing plans enforced by warehouse owners, and expands state oversight over decisions previously handled by local officials.
Existing warehouses will not be affected unless they expand, which would trigger new regulations. The League of California Cities opposes AB98, expressing disappointment over the lack of local input during its passage. Advocates suggest potential amendments may be needed in the next legislative session due to unresolved issues.
Developers can avoid the new regulations by starting the local entitlement process before September 30 or receiving local approval by January 1. However, these exemptions expire if no development activity occurs within five years. New provisions affecting trucking, such as truck routing plans and idling restrictions, will take effect in January.
