Americas News
US Suppliers Brace for Reduced Demand Ahead of Potential Strike
Bunker suppliers in the US are preparing for a significant reduction in demand if a planned port strike goes ahead this week.
The labour contract for the 45,000 port workers in the International Longshoremen's Association expires late on Monday, and the union has threatened a strike affecting ports across the US East and Gulf Coasts from the start of Tuesday.
The container and vehicle carrier segments are the most likely to be affected if the industrial action goes ahead, John Barbarise III of Ankora Fuels told Ship & Bunker.
"We are closely monitoring the situation like many other industry participants," Barbarise said.
"If the strike happens, we do expect the container and car carrier demand to temporarily drop off, however tanker and chemical carrier demand should remain unaffected as the oil terminal dock workers are part of a different union and not involved in the labor negotiations."
While lower bunker demand is most likely overall, a small increase is possible if ships opt for waiting outside port limits on the expectation of a prompt end to the strike.
"The duration of the strike -- if it happens -- will ultimately determine if there is any short-term increase in demand as vessels wait for port operations to resume," Barbarise said.
"Ankora's barge is fully loaded with MGO and ready to deliver to any ships in New York Harbor in preparation for the possible strike or while they wait for port operations to resume, if the strike happens."
