While growth deceleration is always viewed upon with caution, from a labor relations perspective a deceleration of growth allows time to catch up with training and investment implementation, which is always more difficult when we’re trying to get ahead during the higher growth periods. As of this writing, the latest slate of US tariffs has not had a significant impact in New York and New Jersey on total year-over-year volumes, but there is a slight downward trend and concern that once inventories are depleted, inventory replenishment will lead to higher prices and lower volumes. Tariff concerns have also done away with the “normal” seasonality of US shipping. The usual post-Lunar New Year bump followed by building inventories, back to school, then pre-holiday peaks have been replaced with spikes in volume to avoid rising tariffs — the timing of which is uncertain. This proves difficult in planning, as well as balancing the need for skilled labor to be available at the right place and right time. The headlines coming out after the protracted Master Contract bargaining and short October 2024 strike had been on economics and the implementation of automation. What was not reported were the significant steps made in our local agreement on reducing absenteeism and improving productivity. So far, new procedures and penalties for non-compliance have resulted in a 50% reduction in absenteeism and an overall 10% increase in vessel productivity at most terminals, with more gains anticipated. There are also productivity minimums which increase every year of the agreement. Additional training is being provided where necessary to achieve these goals and, again, there is corrective action if goals are not achieved. We look forward to continuously implementing these improvements with the help of the International Longshoremen’s Association to ensure we’re prepared to handle the volume, regardless of the growth or tariff landscape.
John Nardi, President, Shipping Association of New York & New Jersey