A Threat to the Supply Chain
Author: Greg Valliere
September 25, 2024
ADDING TO YESTERDAY ‘S LIST of what could go wrong for the Biden-Harris administration is the growing threat of a massive strike of U.S. dockworkers, who still have no contract.
A WALKOUT could lead to supply chain disruptions — and could raise prices — just before the holiday season. A Bloomberg article yesterday points out that shares of shipper AP Moller-Maersk are up by nearly 5 percent “on expectations that labor talks with U.S. port workers will fail and spark a new round of supply-line disruptions that would boost rates.”
THE SHIPPING GIANT announced earlier this week that it will add a local port disruption surcharge for all cargo moving to and from the U.S. east coast and Gulf coast terminals, to cover higher costs from “potential labor disruptions.” The U.S. dockworker labor union and the shipping industry group face an Oct. 1 deadline to reach a new wage deal after talks have stalled for months.
FOR MAERSK and other container lines, a strike would add to a string of global trade disruptions in recent years, including the Covid-19 pandemic and attacks on ships in the Red Sea, which have boosted the freight rates they can charge their customers.
MAERSK HAS SAID that even a one-week U.S. strike could have a large ripple-effect impact on supply chains, causing four-to-six weeks of disruptions. according to the Bloomberg article.
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OUR ARTICLE ON WHAT COULD GO WRONG FOR THE DEMOCRATS in the election contained one point that prompted some emails. We suggested that a wild card involves Joe Biden’s health and persistent questions about whether his condition has been covered up.
WE BELIEVE THAT A SMALL GROUP OF WHITE HOUSE insiders were aware that something was seriously wrong with Biden earlier this year. Yet they kept quiet, insisting that he was fine. There’s more to this story, and some of Washington’s best reporters are digging into who knew what.
WAS THERE A COVER-UP? Biden’s aides were determined to keep him on the ballots, but then came his disastrous debate performance. Kamala Harris was ready to run and wrapped up the nomination within a few weeks — did she know in advance that Biden could not serve a second term? More to be revealed . . .
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EDITOR’S NOTE: We won’t publish tomorrow, got a very early flight. Back on Friday morning. . .
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