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AAFA urges action on shipping security and port contract negotiations

  

The American Apparel & Footwear Association (AAFA) has called on President Joe Biden to expand US efforts to secure international shipping lanes in the Red Sea from Houthi terrorism. The association also urged the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) to resume negotiations and finalize a new Master Contract agreement before its expiration on January 15, 2025.

November 19 marks the anniversary of the Houthi seizure of the British-owned cargo vessel Galaxy Leader, highlighting the growing threat to maritime security. AAFA warned that the increasing frequency of Houthi attacks forces vessels to reroute around the Cape of Good Hope, adding significant delays and costs, while exacerbating inflation and harming sustainability goals.

AAFA president and CEO Steve Lamar emphasized that these disruptions hurt US businesses, workers, and consumers. The rerouting of ships increases shipping expenses and delays, adding further strain to US ports, including East and Gulf Coast facilities. Lamar stressed that the apparel and footwear industry, already grappling with inflation and supply chain challenges, cannot withstand additional setbacks.

With a potential labor dispute looming, AAFA also urged the ILA and USMX to avoid a strike that could disrupt critical ports and worsen inflation. Lamar emphasized the importance of continuing negotiations to reach a fair agreement before the contract expires to ensure economic stability and mitigate further disruptions to the global supply chain.

 
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