USWC: The ILWU Local 26 and PMA (Pacific Maritime Association-representing the ocean carriers and terminal operators who employ the ILWU laborers) have agreed to extend their contract negotiation deadline to midnight Pacific Time on Friday, November 6, delaying a possible strike at the Ports of Los Angeles and Long Beach. Local 26 represents about 250 watchmen with security duties, but PMA has warned that other ILWU members would be expected to honor their picket lines. The broader West Coast longshore contract is not affected and runs through 2028; however, all ILWU members could support the strike creating a massive stoppage or slowdown of cargo movement. We continue to expect resolution without strike action but are keeping a close watch on the situation.

France: As reported on October 30, France is experiencing a national strike today and work stoppages are ongoing at French ports and terminals. Reports indicate that strike action will continue tomorrow, including a separate 24-hour strike by French port tugboat crews planned for November 6. The “Yellow Vest” movement is calling for rolling strikes, especially around transport and infrastructure, and mass demonstrations called for November 7 across the country. The Yellow Vest movement has combined with students and various trade unions to protest cost of living, teacher shortages, and austerity measures. Expect delays to container handling and vessel schedules, along with added congestion on top of the existing backlog at Le Havre.

On top of the strikes, French customs is also experiencing a system outage. Since Tuesday, November 3 at 3:00 PM, the national customs system (Delta IE) has been down, and the supplier customs system (GAMMA 2) has been disconnected. Customs had expected repairs within 24 hours, but that has not happened, and the emergency process has become overwhelmed by the volume of requests from suppliers and customs brokers. As a result, many containers may not be customs cleared and could be rolled to later sailings.

We will share updates on both situations as they become available.