Inflationary impact not ruled out in the face of possible port strike | Top Stories

Although Puerto Rico is not involved in the International Longshoremen’s Association (ILA) labor-management conflict, other complications, including the closure of the port of Jacksonville, could cause inflation in products.

This was acknowledged by the executive director of the Port Authority, Joel Pizá, this afternoon during a radio interview on WKAQ.

“Yesterday (Sunday) I was able to talk with the director of the Port Authority in Jacksonville, Eric Green, and we all understand that traffic between Jacksonville and Puerto Rico should not be interrupted,” said the official, regarding the threat of strike by 45,000 workers of the ILA USMX agreement, and that it would begin at 12:00 a.m. tonight

This will affect the operations of 14 ports on the East Coast and the Gulf of the United States, halting container traffic from Maine to Texas.

Puerto Rico currently imports most of its products from the Jaxport port in Jacksonville, where the strike is estimated to affect about one-third of the company’s operations, mainly in the handling of international containers and the volume of international vehicles operated by SSA Jacksonville.

However, the remaining operations, which include most of the cargo destined for Puerto Rico, will continue normally, according to official statements from the Jacksonville Ports Authority.

Pizá explained that in an alternative scenario in which greater complications arise and access to Jaxport’s terminals is restricted, both Tote Maritime and Crowley have already identified other ports that are not involved in the 14 affected by the labor-management conflict.

In this case, companies would have to activate their contingency plans, which would imply the need for the use of land transport and to move cargo to these alternative ports and ensure the continuity of their operations.

“What is going to be the challenge? Inflation, because they are going to have to transport by trains and that is a cost that will be reflected,” Pizá explained during a radio interview on WKAQ.

He also indicated that, if the strike materializes and extends for more than 15, 20 or 30 days, in such a globalized distribution chain, “some products will undoubtedly be affected,” since the 14 ports constitute 50% of all cargo arriving in the United States by sea.

 “This is no small thing. This could be the largest strike since 1977. The union has said that it will not affect cruise ships and the president (of the union) Harold Dagget has also said that it will not affect the military cargo either, but without a doubt it will create a greater dislocation,” Pizá said.

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