With the nation’s economic uncertainty hanging on by the last finger due to the impending fiscal cliff, at least there is a small silver lining with today’s news that a strike has been avoided [albeit temporarily] between the International Longshoremans’ Association and shipping companies.
According to Bloomberg, the strike will be put on hold for another 30 days in which federal mediator George Cohen says will be enough time to finalize a long term deal between both sides. Cohen added “The agreement on this important subject represents a major positive step toward achieving an overall collective bargaining agreement. While some significant issues remain in contention, I am cautiously optimistic that they can be resolved in the upcoming 30-day extension period.”
One point of contention keeping both sides apart has been container royalties, which pay bonuses to dockworkers based on total volume of all cargo that comes through their port.
Mathew Shay, CEO of the National Retail Federation is certainly pleased to seethis good sign. “Throughout the process, NRF has stressed the vital economic importance of keeping the ports open to international trade and commerce. Our ports and the cargo and containers that flow through them are truly our economic lifelines to the world," Shay said.
If and when a long term deal gets done in the upcoming weeks, DRT will pass long all the details.