September 12, 2024

The possibility of a supply chain disruptions at U.S. East Coast and Gulf Coast ports became more likely after the International Longshoremen’s Association (ILA) voted unanimously last week to go on strike on October 1 if ILA and the United States Maritime Alliance (USMX) fail to reach a new labor agreement to replace the previous one that expires on September 30.

WaterISAC previously reported that disruptions to port operations could impact 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. In addition to the possibility of delayed shipments of chemicals should an agreement not be reached, there could be delays in manufactured goods used by water and wastewater utilities, such as vehicles and equipment with computer chips. Utilities can help mitigate the risk of supply chain shocks by understanding their supplier dependencies and planning for disruptions.

“The ILA hasn’t had a coastwide strike for nearly five decades. But there’s little doubt that a strike spanning both the East Coast and Gulf Coast – home to 5 of the 10 busiest ports in North America – would be far-reaching. No industry or region would be immune to the ripple effects of this major disruption,” said Mia Ginter, director of North American Ocean for C.H. Robinson, a third-party logistics firm. WaterISAC will continue to monitor the potential strike and provide updates as the situation develops. Read more at The Load Star, at Container News, or at PPAI Media.

For supply chain risk mitigation recommendations and resources from the EPA, see the previous post below.

July 2, 2024

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:

• Chemical Suppliers and Manufacturers Locator Tool
• Water and Wastewater Supply Chain Case Studies
• Water Treatment Chemical Supply Chain Profiles
• Understanding Water Treatment Chemical Supply Chains and the Risk of Disruptions

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: [email protected].

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 [email protected]. WaterISAC also encourages its members to report supply chain disruptions by emailing [email protected] or calling (866)H2O-ISAC.