News: Ports strike expected tonight

Monday, September 30, 2024

Ports strike expected tonight

Sep 30, 2024

With help from Oriana Pawlyk

Quick Fix

— The clock is ticking: A longshoremen strike on the East and Gulf coasts appears likely overnight. What do lawmakers think?

— Hurricane Helene’s catastrophic deluge of rain closed hundreds of North Carolina roads and left devastation across the South.

— A judge denied New York Gov. Kathy Hochul’s effort to toss out lawsuits that aim to reinstate congestion pricing.

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Driving the day

DEADLINE APPROACHES: Dockworkers along the Eastern Seaboard are poised to strike as soon as 12:01 a.m. Tuesday — a work stoppage that could pinch portions of the economy unless it’s averted today. The walkout would be the first of its kind since 1977 — and it comes roughly a month before Election Day.

— The campaigns have remained silent on the issue. And the White House has insisted that President Joe Biden will not invoke a 1947 labor law, the Taft-Hartley Act, that gives him the power to force striking workers back to their jobs while contract negotiations continue. But the consequences of the looming work stoppage might force Democratic presidential nominee Kamala Harris and Biden to weigh in — or take action.

STAYING ABOVE THE FRAY: Your MT host asked senators about their level of concern and whether the Biden administration should intervene. Reactions were mixed:

— Sen. Tim Kaine (D-Va.), who represents the Port of Virginia, said “we gotta find a deal.” Asked about the administration’s response, he added: “I’m not gonna give ‘em advice about how to do it, but it would be a bad thing for Virginia and for the country to have a strike.”

— “I don’t know,” said Sen. Raphael Warnock (D-Ga.), who represents the Port of Savannah, Georgia, when asked if the administration should get involved. The port is an important economic driver, he said, and “that kind of work stoppage is something we would try to avoid.”

— Sen. Cory Booker (D-N.J.), whose state includes part of the Port of New York and New Jersey, said he’s “gravely concerned” about the possible impact on the economy, but when asked if the White House is taking a strong enough stance on the issue, said: “I’m gonna try to stay out of the short-stroke right now or opining on things; I’m doing everything I can from my position to make sure this doesn’t happen, and I wanna leave it at that.”

— “I think we should not let this happen ‘cause we’re in a fragile time for our economy,” said Sen. Lindsey Graham (R-S.C.), who represents the Port of Charleston, South Carolina. (He dashed before your MT host could ask for more details.)

— Sen. Marco Rubio (R-Fla.), whose state includes the Port of Jacksonville and Port of Miami, said the potential strike is a “national security threat” and he hopes “whatever disputes exist could be worked out.”

— Sen. Elizabeth Warren (D-Mass.), who represents the Port of Boston, said she didn’t have a comment.

DOT’S ROLE: A DOT spokesperson in a statement to your MT host said Secretary Pete Buttigieg and senior officials are monitoring negotiations and engaging with partners “across the supply chain, including those that may be affected by potential disruptions.”

LABOR WEIGHS IN: Greg Regan and Shari Semelsberger, president and secretary-treasurer, respectively, of the Transportation Trades Department of the AFL-CIO, in a statement said, “Relying on Taft-Hartley is not a winning strategy and should not be” the United States Maritime Alliance’s “expected path to resolution.”

Infrastructure

'UNPRECEDENTED TRAGEDY': Hurricane Helene, which made landfall in Florida late Thursday as a catastrophic Category 4, has wreaked havoc across the South, including in western North Carolina, where about 390 roads, including areas along Interstate 40, remained closed Saturday due to flooding, downed trees, landslides or other damage, the state transportation department said. “The scope and magnitude of this devastation is unlike anything many long-time residents have ever seen,” North Carolina Transportation Secretary Joey Hopkins said in a statement. Gov. Roy Cooper (D) in a statement added: “This is an unprecedented tragedy that requires an unprecedented response.”

— In South Carolina, the state transportation agency on Sunday temporarily closed the Great Falls Highway bridge over the Catawba River due to rising waters. Georgia’s transportation department said Sunday there were 58 road closures on state routes in southwest Georgia, largely due to power lines tangled in trees. In Tennessee, officials warned Saturday of an imminent dam failure in Greene County, triggering evacuations, but ultimately the structure remained intact.

DOT INVOLVED: In a Saturday post on X, Buttigieg said DOT is “granting waivers to ensure trucks can deliver goods, and we stand ready to deploy emergency relief funds.”

Automobiles

LEGAL FIGHT CONTINUES: After hearing arguments Friday, a Manhattan Supreme Court judge denied New York Gov. Kathy Hochul’s bid to dismiss two lawsuits that seek to reinstate the city’s contentious congestion pricing program. Hochul, in a last-minute decision in June, put an indefinite pause on the initiative, arguing it risked "too many unintended consequences for New Yorkers at this time.” But that sparked legal challenges — one from environmental groups and transit advocates and the other from the City Club of New York. They argue that Hochul violated state laws — including one from 2019 that set up the pricing system for drivers below 60th Street in Manhattan — and New York’s constitution.

Supply Chain

TEST ON THE HORIZON: The potential ports strike would be the latest test for the Biden administration’s vaunted supply chain efforts, which include the formation of various councils, the use of the Defense Production Act to make more essential items like medicines in the U.S. and the development of various data tools to monitor vulnerabilities, Ari Hawkins reports.

Aviation

EVERYBODY GATHER ’ROUND: Federal Judge Reed O’Connor of the Northern District of Texas on Friday set a hearing date of Oct. 11 for the Justice Department, Boeing and families affected by two deadly Boeing MAX crashes in 2018 and 2019 to present their arguments over Boeing’s plea agreement with the government.

— According to Friday’s filing, both counsel for Boeing and the DOJ will each have 20 minutes to make their case about why the plea agreement as it stands should get the final sign-off from O’Connor. They’ll then each have 10 minutes for rebuttal once lawyers for the families, who get an hour total, offer their proposal for rejecting the deal.

TO RECAP: In July, Boeing and the DOJ came to an agreement that the aerospace company would plead guilty to conspiracy to defraud the government in connection to the 2018 and 2019 plane crashes on foreign carriers. In 2021, Boeing made a plea agreement with the DOJ that would have given them a probationary period to avoid trial for said charge — but in May, following a broader probe into the company that stemmed from the Alaska Airlines door plug blowout in January, the DOJ said Boeing violated the terms of that 2021 deal. The families have argued that the latest plea agreement — which includes millions in fines, as well as the implementation of an independent third-party monitor — is not enough.

NO PROGRESS: The International Association of Machinists and Aerospace Workers 751, which is striking at Boeing, said Friday that contract talks between it and the plane maker had broken off. No further dates have been scheduled, the union said, adding that: “We remain open to talks with the company, either direct or mediated.”

BUMP IN CANCELLATIONS: In July, airlines canceled 2.9 percent (19,574) of scheduled domestic flights, according to data released by DOT on Friday. That’s higher than the cancellation rate of 2.5 percent (15,875) in July 2023 and above the year-to-date rate of 1.7 percent in 2024.

Shifting Gears

— Landon Bailey is now senior policy adviser and strategist at the African American Mayors Association. He most recently was adviser for intergovernmental affairs at DOT. (h/t Daniel Lippman)

The Autobahn

— “New York City Mayor Faces Wrath—of Frequent Fliers." The Wall Street Journal.

— “Harris Tiptoes Away From Electric Vehicle Stance as Trump Seizes an Opening in Michigan." The Wall Street Journal.

— “Beneath the Potential Strike at U.S. Ports: Tensions Over Innovation." The New York Times.

— “Why Stellantis, Owner of Chrysler, Jeep and Ram, Is Struggling." The New York Times.

— “Five People Dead in Plane Crash Near Wright Brothers Memorial." The New York Times.

— “5 Days With Elon Musk on X: Deepfakes, Falsehoods and Lots of Memes." The New York Times.

— “Toyota to recall over 42,000 vehicles over loss of power brake assist, NHTSA says." Reuters.

— “Mercedes-Benz USA to recall over 27,000 vehicles over risk of engine stall, NHTSA says." Reuters.

— “Interstate closed outside Atlanta as residents evacuate due to chemical plant fire." AP.

— “Baltimore longshoremen sue owner and manager of ship that caused the Key Bridge collapse." AP.

— “Electric Vehicle Sales Are Stumbling. Here’s Why." Bloomberg.