Maritime Law Blog

Will sour economy affect longshoremen’s jobs – and safety?

Members of the International Longshoremen’s Association (ILA) are stunned to find themselves hurting in this economy.  Traditionally considered a business that was recession proof, the world economic slowdown is taking its toll on offshore workers across the globe.

Usually economic woes in the United States are not an issue for longshoremen.  When exports drop, usually imports pick up as Americans seek cheaper goods.  When things turn around and imports drop, exports usually rise.  In this economy both imports and exports are down, hurting shipping companies and longshoremen.

Some ship workers are seeing work hours drop by as much as a quarter, and others are facing sporadic work or layoffs.  Veteran longshoremen tend to fare better and are often offered first pick of available jobs, while less experienced longshoremen struggle to work enough hours to make ends meet.

A number used to measure the price to move materials by sea called the Baltic Dry Index reached a record high in May of 2008.  However, in December 2008 the index had dropped to its lowest point since 1986.  Not only are there fewer ships sailing, but they also contain fewer goods so it is taking less time to unload the ones that do arrive. 

The concern in a down economy is always that employers will be less careful about safety and employees – wary of biting the hand that feeds them – won’t be as forthcoming about reporting accidents, injuries, and unsafe working conditions.  In an attempt to safeguard dwindling profits, employers may also be more aggressive in fighting Jones Act and maritime law cases.