February 2, 2016
Mr. Harold Daggett
President
International Longshoremen’s Association
5000 West Side Ave.
North Bergen, NJ 07047
Mr. David Adam
Chairman and CEO
United States Maritime Alliance, Ltd.
125 Chubb Avenue, Suite 350NC
Lyndhurst, NJ 07071
Dear Mr. Daggett and Mr. Adam:
On behalf of the National Retail Federation (NRF) and the millions of employees we
represent and the customers they serve, I am writing to express our concern with the strike that
occurred at the Port of New York and New Jersey on Friday, January 29, 2016. Illegal strikes like
this one are exceptionally disruptive and create uncertainty among stakeholders, and the members
of NRF urge you to strive to avoid them in the future. While we applaud your decision to engage
in early contract extension discussions, those discussions need to happen without the kind of
disruption that occurred last week.
Illegal labor actions that cause a complete shutdown of the largest port on the East Coast
will not be tolerated by shippers. Such disruptions send a very troublesome message to the port’s
customers – the cargo owners. While there may be outstanding non-contract issues, electing to
walk off the job in protest, even for a short period of time, only adds to ongoing congestion issues
facing the port and its customers. These congestion issues impact thousands of companies and
millions of workers who rely on efficient movement of goods, either imports or exports, through
the nation’s ports.
The economic impacts of major port disruptions are already well known. The recent
slowdowns on the West Coast had a measurable impact on U.S. GDP. The East and Gulf Coast
ports gained significant cargo volumes as a result of the disruptions on the West Coast. Shippers
have some ability to shift discretionary cargo, and they will continue to do so if they experience
repeated disruptions.
Looking forward to the expansion of the Panama Canal, East Coast ports are in position to
gain additional market share. The threat of potential or ongoing labor disruptions, however, will
force retailers and other stakeholders to reevaluate supply chain options for their cargo. Events
like last week’s strike can do a great deal of damage to the image of East Coast ports as reliable
business partners for the shippers represented by NRF.
NRF is the world’s largest retail trade association, representing discount and department
stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain
restaurants and Internet retailers from the United States and more than 45 countries. Retail is the
National Retail Federation
February 2, 2016
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nation’s largest private sector employer, supporting one in four U.S. jobs – 42 million working
Americans. Contributing $2.6 trillion to annual GDP, retail is a daily barometer for the nation’s
economy. NRF’s This is Retail campaign highlights the industry’s opportunities for life-long
careers, how retailers strengthen communities, and the critical role that retail plays in driving
innovation.
Again, we call upon the leadership with the ILA and USMX to discuss contract and noncontract issues at the bargaining table without supply chain disruptions. Long-term stability at the
East Coast and Gulf Coast ports is essential. We believe early negotiations on the existing
contract should be the path forward and hope that solutions to the tough issues, including those not
currently in the contract, will be worked out at the bargaining table, and not with short term, illegal
strikes.
If you have any questions, please contact Jonathan Gold, NRF’s Vice President, Supply
Chain and Customs Policy at (202) 626-8193. Thank you for your consideration.
Sincerely,
Matthew R. Shay
President and CEO