US east coast port strike may be days away

Shippers moving cargo through US east and Gulf coast ports face significant uncertainty as contract negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) near their critical January deadline. 

Negotiations between the ILA and USMX are scheduled to resume on 7th January, leaving a narrow window to finalise the new master contract before the 15th January deadline. Without an agreement, the anticipated strike could mark one of the most disruptive events in recent years for US maritime logistics.

If no agreement is reached by 15th January, a coast-wide dockworker strike involving 45,000 union members could commence, threatening major disruptions across the region’s ports.

While the ILA and USMX have already agreed on a substantial 62% wage increase, negotiations remain deadlocked over automation. The USMX argues that technologies like semi-automated rail-mounted gantry cranes (RMGs) are vital for improving port productivity and creating job opportunities. However, the ILA opposes increased automation, citing concerns over its impact on job availability.

President-elect Donald Trump has added further complexity to the talks, siding with the ILA against automation. Observers suggest that a strike could align with Trump’s inauguration on 20th January, potentially positioning him as a mediator to resolve the dispute favourably for the union.

Shipping lines prepare for disruption

With trans-Pacific spot rates to the east coast already surging the following carriers have announced surcharges and contingency plans to offset potential delays and costs:

Maersk: Is urging shippers to clear containers and return empties at east and Gulf coast ports before 15th January to minimise disruptions.

Hapag-Lloyd: Introducing a “Work Disruption Surcharge” and “Work Interruption Destination Surcharge” of $850 per TEU or $1,700 per FEU from 20 January.

CMA CGM: Implementing a $1,500 “Peak Season Surcharge” on 15th January for cargo from the Indian Subcontinent, Middle East, Red Sea, and Egypt to east and Gulf coasts.

Yang Ming: Applying a “Port Congestion Surcharge” of $800 per TEU and $1,000 per FEU from 15 January for US and Canadian ports.

MSC and Zim: Announced surcharges linked to potential disruptions, with MSC also restructuring its trans-Atlantic network as it exits the 2M Alliance with Maersk.

With strike and tariff uncertainties, Metro’s proactive solutions are essential to keeping your supply chain strong and adaptable.

Our expert team continuously monitors the shifting landscape, offering strategic guidance to help you navigate regulatory changes, optimise shipping routes to avoid disruption, and control costs effectively.

EMAIL our Managing Director, Andrew Smith, to discover how Metro can protect and future-proof your North American supply chain.