Dive Brief:
- The American Apparel & Footwear Association is calling on the International Longshoremen’s Association and the U.S. Maritime Alliance to continue negotiations for its master contract agreement set to expire Jan. 15, according to a press release Tuesday.
- AAFA, an organization with more than 1,000 fashion industry members, is asking the ILA and USMX to negotiate in order to avoid a strike that would disrupt the East and Gulf Coast ports.
- The organization also sent a separate letter to President Joe Biden, which urged the U.S. government to expand its efforts in protecting international shipping lanes in the Red Sea from attacks from Houthi rebels.
Dive Insight:
The combination of port congestion and rail delays are already contributing to what the AAFA called “significant economic strain,” and it added that “the apparel and footwear industry can’t afford further disruptions.”
Over the last year, there have been ongoing attacks on commercial shipping in the Red Sea, which has caused shipping companies to reroute around the Cape of Good Hope in South Africa. The route change adds costs, delays and environmental damage, which exacerbates shipping expenses and undermines sustainability goals, said Steve Lamar, AAFA president and CEO.
“The rising costs from rerouting vessels are unsustainable, and the impact on American industries is severe,” Lamar said in the release. “American consumers and businesses cannot afford further delays or disruptions. The stakes are too high, and immediate action is needed to protect our industries, workers, and the global economy.”
These delays, rising shipping costs and inflation have increased pressure on U.S. ports, including the East and Gulf Coast ports, per the release.
Nov. 19 marked the anniversary of the date a group of Houthi rebels seized the cargo vessel Galaxy Leader and its crew, who still remain captive, per the release.
“AAFA calls for urgent action to safeguard freedom of navigation, protect global trade, and address the economic and environmental challenges that have emerged as a result of these attacks,” the organization said in the release.
