South Africa’s fruit exporters are relieved after the US East Coast ports narrowly avoided a strike that could have caused major disruptions and delays to their seasonal exports.
Dockworkers, represented by the International Longshoremen Association (ILA), and their employers, the United States Maritime Alliance (USMX), reached a tentative six-year agreement, escaping a 15 January strike that threatened global shipping and supply chains.
Antoinette van Heerden, logistical affairs manager at the Fresh Produce Exporters Forum South Africa, told Food For Mzansi they are relieved by the in-principle agreement, which now awaits formal approval by ILA members in the coming weeks.
“A strike would have been detrimental to the deciduous export season, and it seems we have dodged a bullet,” Van Heerden said.
Fruit industry welcomes developments
In response to questions from Food For Mzansi, other South African fruit industry representative bodies, including the South African Table Grape Industry (SATI) and Hortgro, also expressed their relief, welcoming the tentative agreement between ILA and USMX.
“We will continue to engage with stakeholders and monitor the situation pending ratification. Industry members are encouraged to stay informed through their respective representative bodies,” they said in a joint statement.
Meanwhile, Transnet Port Terminals indicated that it did not anticipate significant disruptions to its operations as a result.
South Africa’s wine industry also welcomed the tentative agreement. Wanda Augustyn, communications and brand manager at South Africa Wine said South African freight forwarders work closely with shipping lines and maintain regular operational procedures to ensure optimal local cargo management.
“The industry retains confidence in its freight forwarders’ expertise to handle any logistical challenges that may arise, focusing on maintaining efficient operational flow within South Africa rather than speculating about potential impacts,” she said.
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Details of agreement unknown
In a joint statement, ILA and USMX announced that the agreement protects current jobs while introducing a framework for port modernisation, which will create new jobs, enhance safety and efficiency, and strengthen supply chains on the East and Gulf coasts.
“This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.
“We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thus averting any work stoppage on January 15, 2025,” they stated.
Details of the new tentative agreement will not be released to allow ILA rank-and-file members and USMX members to review and approve the final document.
Maersk reassures customers
Meanwhile, Maersk Shipping Company expressed its gratitude to both parties for reaching a mutually beneficial agreement.
“In light of the intended agreement, there will be no changes to terms and conditions, nor will port disruption surcharges apply. In addition, all services should be performed as per latest available schedules. No additional contingencies are planned at this time,” Maersk said.
This comes after Maersk had previously encouraged customers to pick up their laden containers and return empty ones in the US East and Gulf Coast ports before 15 January, to mitigate potential disruptions.
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