One of PortMiami’s biggest customers, City Furniture, is worried if a planned strike this week by longshoremen goes on beyond a few days.
The Tamarac-based retailer imports two-thirds of its items from overseas. Much of that comes through PortMiami on container ships. Dock workers who help unload those container ships will strike early Tuesday morning.
The members of the International Longshoremen’s Association are stopping work at 36 ports from Texas to Maine, including PortMiami and Port Everglades in South Florida.
The union represents 45,000 dockworkers. It demands higher wages and a complete ban on the use of automation for cargo terminal cranes, gates and trucks that move containers. About 60% of the country’s cargo comes through the three dozen ports impacted by the strike.
“One day, two days — very disruptive,” said City Furniture CEO Andrew Koenig. “If this lasts more than that — very scary.”
READ MORE: Florida ports see a boost in cargo and cruise traffic
Koenig’s company ordered ahead as it prepared for the possibility of a strike. However, increasing orders before customers buy requires the financial means to pay for it. “You can't really bet the bank on it. It's really a lot of guessing,” Koenig said.
The ports in South Florida are not directly involved in the labor dispute. The labor fight is between the longshoremen’s union and a group of companies operating cargo terminals at ports along the Gulf and Atlantic Coasts. The ports themselves are branches of county governments. Terminal operators run the container businesses moving cargo on and off the ports.
It has been a mixed year for trade through PortMiami and Port Everglades this year.
Total trade is down 6% in Miami in July compared to a year ago thanks to a sharp drop in imports. The drop comes after a record 2023. The port in Biscayne Bay has seen imports fall from each of its top three trading partners, the Dominican Republic, China and Honduras.
Exports to four out of its five top trading countries are down year-to-date. WLRN reached out to the union local for PortMiami ILA workers but has not heard back.
Meantime, trade through Port Everglades has been growing this year. Imports were up almost 11% in July compared to last year. Unlike the port to its south, Port Everglades has seen a small increase in containerized trade this year. Imports from the Dominican Republic and Brazil are up while exports to four of the five largest trade partners are down so far this year.
READ MORE: Florida ports see a boost in cargo and cruise traffic
Medical instruments, clothing and boats are among the largest import categories through the port. Just over 40% of cargo container volume at Port Everglades is handled by terminals employing ILA union dockworkers, according to port spokeswoman Joy Oglesby.
The union local representing Port Everglades ILA workers did not respond to an email seeking comment.
In a Facebook post, the ILA accuses shippers of “killing the customers” by hiking shipping fees. The union claims shipping companies are charging $30,000 for a container, up five-fold from a few weeks ago. However, it is not clear what data the union is using. The Freightos Baltic Container Index, which tracks the cost of shipping 40-foot containers on 12 global trade routes, is up 83% this year.
Many of City Furniture's bedroom and dining room sets come to the U.S. through Florida ports before arriving on its showroom floor and warehouses.
“We're a big retailer,” said Koenig. “We’ve got strong financials. We're not going anywhere. I don't know how many other retailers, manufacturers or folks that rely on products coming through the ports [can] keep their production plants running or their retail shops running if there's nothing on the shelves.”
But it's cruising that remains king at South Florida ports. Miami and Fort Lauderdale are two of the busiest cruise ports in the world. They combined to greet more than 10 million passengers last year. PortMiami is by far the busiest with more than 7 million passengers. Cruise operations are not affected by the strike.
Neither will the important importing of gasoline and other energy products. More than 12.5 million gallons of gasoline, aviation fuel and propane pass through Port Everglades each day. Gasoline for a dozen Florida counties first goes through the port.
The strike by the ILA is the first since 1977. It lasted 44 days.
