US port strike threats on East and Gulf Coasts

The International Longshoremen’s Association (ILA) contract with maritime employers, represented by the United States Maritime Alliance (USMX), is set to expire on the 30th September 2024 and with under 10 weeks remaining, negotiations have stalled, making a strike increasingly likely. 

Any strike that potentially impacts all Atlantic and Gulf Coast ports would cause significant disruption to containerised US import and exports, especially with West Coast port workers potentially refusing to handle diverted cargo in solidarity.

However, the ILA has a record of resolving contracts without strikes, with the last major disruption occurring in 1977 and had planned to resolve local jurisdiction contracts before starting master contract talks but these negotiations were cancelled due to a dispute at the Port of Mobile. The USMX has expressed a desire to move forward productively but acknowledges that time is running out.

Despite time running out to sign a new contract before the current deal’s expiration the ILA is unwilling to extend the current contract or accept intervention from outside agencies. 

The ILA is also seeking recognition for the longshore workers’ efforts during the pandemic, similar to the West Coast’s International Longshore and Warehouse Union (ILWU), which secured a significant pay increase in their recent contract.

The union’s firm stance against port automation, particularly the use of an auto gate system at the Port of Mobile, has been a significant sticking point. This system processes trucks without ILA labor, which the union claims violates the current master contract and resulted in the stalling of the most recent negotiations. 

The ILA alleges that increasing the number of IT personnel at marine terminals undermines traditional dockworker roles and they will not resume talks until these issues are resolved.

The looming strike poses a significant threat to maritime operations along the East and Gulf coasts, but there are questions as to whether the union would proceed with a potentially devastating strike just five weeks before the presidential elections in the United States.

If you are shipping to or importing through the US East or Gulf Coasts and have concerns about potential ILA strike action, we can assess your situation and, if necessary, develop contingency plans to safeguard your supply chains.

By exploring alternative access ports and adopting a collaborative approach, we will provide optimal solutions to meet your supply chain needs.

To learn how we can support your trade with the United States or for more information about our ocean solutions, please EMAIL our Chief Commercial Officer, Andy Smith.