AAFA urges ILA and USMX to restart negotiations to finalize a contract and President Biden to take stronger action to protect global shipping in the Red Sea

The American Apparel & Footwear Association (AAFA) today sent a letter to President Joseph R. Biden urging the U.S. government to significantly expand efforts to protect international shipping lanes in the Red Sea from Houthi terrorism. AAFA simultaneously sent a letter urging both the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) to return to the negotiating table and build on the progress already made toward finalizing a new Master Contract agreement before the January 15, 2025, expiration.

As November 19 marks the anniversary of the Houthi seizure of the British-owned, Japanese-operated cargo vessel Galaxy Leader, and its crew, who remain hostage, AAFA calls for urgent action to safeguard freedom of navigation, protect global trade, and address the economic and environmental challenges that have emerged as a result of these attacks.

"The rise in Houthi attacks targets life and liberty and continues forcing vessels to reroute around the Cape of Good Hope in South Africa. This longer route adds substantial costs, delays, and environmental damage, exacerbating inflation, increasing shipping expenses, and undermining sustainability goals. While we commend the U.S. military for its efforts to protect shipping lanes, including escorting ships and imposing sanctions, Houthi attacks have only become more frequent and brazen. The Houthis are benefiting from these attacks, which continue to put ships and their crew in harm’s way. U.S. businesses, workers, and consumers are also bearing the brunt of the consequences. The rising costs of rerouting vessels are unsustainable, and the impact on American industries is severe. American consumers and businesses cannot afford further delays or disruptions. The stakes are too high, and immediate action is needed to protect our industries, workers, and the global economy," said AAFA president and CEO Steve Lamar.

With the looming January 15 port negotiations deadline, AAFA is also calling on the ILA and USMX to work collaboratively to avoid a strike that could significantly disrupt the nation’s critical East and Gulf Coast ports and magnify inflation.

Over the past year, ongoing attacks on commercial shipping in the Red Sea have caused shipping companies to reroute goods around the Cape of Good Hope in South Africa. These delays, combined with rising shipping costs and inflation, have placed additional pressure on U.S. ports, including those on the East and Gulf coasts. With the port congestion and rail delays already contributing to significant economic strain, the apparel and footwear industry cannot afford further disruptions.

“Supply chain disruptions are a serious concern for our industry, and we cannot afford additional setbacks as we approach critical shipping periods like the Lunar New Year. We urge both the ILA and USMX to continue their negotiations and reach a fair, sustainable agreement before the expiration of the Master Contract. A strike or prolonged labor action would hurt American businesses, workers, and consumers, further complicating an already challenging global supply chain environment and a period of high inflation," said AAFA president and CEO Steve Lamar.

Amid all of this tension, AAFA calls on the ILA and USMX to keep the lines of communication open, build on their progress, and work toward a final and long-term agreement before the January 15, 2025, deadline to ensure continued economic stability and growth for U.S. businesses, workers, and consumers.