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Potential Supply Chain Impacts from East Coast and Gulf Coast Labor Negotiations

Potential Supply Chain Impacts from East Coast and Gulf Coast Labor Negotiations

Created: Tuesday, July 2, 2024 - 13:41
Categories:
Federal & State Resources, General Security and Resilience

As part of its effort to track potential supply chain impacts to the water and wastewater sector, EPA is reporting on ongoing labor negotiations between the International Longshoreman’s Association (ILA) and the United States Maritime Alliance (USMX). If these groups fail to reach an agreement, EPA assesses disruptions to port operations could begin as soon as October 2024, with potential delays of shipments of chemicals used by water and wastewater utilities.

The ILA represents dock workers on the East Coast and Gulf Coast, and the USMX represents port terminal operators and ocean carriers on the East Coast. The negotiations impact 36 ports along the East Coast and Gulf Coast, from Maine to Texas. Their negotiations began earlier this year but were suspended last month by the ILA due to the use of automation at ports. According to EPA, both the ILA and USMX have committed to reaching a new agreement before the September 30 deadline. However, concerns remain about the potential for a disruption in port operations if negotiations do not result in a satisfactory contract. The last major disruption involving the ILA occurred in 1977 and lasted 44 days. In addition to the possibility of delayed shipments of chemicals should an agreement not be reached, EPA also advises there could be delays in manufactured goods used by water and wastewater utilities, such as vehicles and equipment with computer chips. Read more at EPA.

To help utilities enhance the resilience of their chemical supply chain, EPA has created multiple free resources which WaterISAC encourages members to access:

To help prepare for potential future supply chain disruptions in general, WaterISAC recommends utilities review EPA’s “Supply Chain Resilience Guide for Water and Wastewater Utilities.” EPA can also assist utilities with a supply chain resilience assessment. To request additional information about the assessment process, or to indicate interest in participating with an assessment, please email EPA at: SupplyChainSupport@epa.gov.

Additionally, WaterISAC encourages utilities to share any supply chain impacts they experience. In addition to the state primacy agency (and any other entity required by regulations), utilities can report a supply chain disruption to EPA at SupplyChainSupport@epa.gov. WaterISAC also encourages its members to report supply chain disruptions by emailing analyst@waterisac.org or calling (866)H2O-ISAC.