U.S. Port Strike Update -18th December 2024

19 Dec U.S. Port Strike Update -18th December 2024

In our ongoing effort to keep you informed, we would like to share an important market update regarding the ongoing contract negotiations between the ILA and USMX. These developments could impact your shipments.

Update on Contract Negotiations between ILA and USMX

The master agreement between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) expired on September 30, 2024. Ports impacted by the negotiations include Baltimore, MD, Boston, MA, Charleston, SC, Miami, FL, New York, NY, Norfolk, VA, Portsmouth, VA, Savannah, GA, Jacksonville, FL, Port Everglades, FL, Philadelphia, PA, Portland, ME, Wilmington, NC, Houston, TX, New Orleans, LA, Mobile, AL, Freeport, TX, and Tampa, FL.

Following a three-day work stoppage, the Biden administration intervened directly with ocean carrier CEOs to secure a 62% pay increase for the ILA over the term of the new six-year contract. As a result, the parties agreed to extend the previous agreement until January 15, 2025, while continuing discussions on the remaining aspects of the master contract.

On November 13, 2024, the ILA and USMX halted negotiations, with both sides remaining at an impasse over the issue of automation at port terminals.

After a brief three-week period of quiet, President-elect Trump voiced his support for the ILA’s stance on automation on December 12. This prompted the USMX to adopt a more assertive approach in the media, emphasizing the need for automation to improve worker safety, enhance port efficiency, expand capacity, and fortify the overall supply chain.

Given these developments, the consensus is that a work stoppage on January 16, 2025, is highly likely, and a prolonged strike lasting multiple weeks cannot be ruled out.

Contingency Options

For shipments to or from the US East Coast or US Gulf Coast:

• Our team can provide alternate routing options via the West Coast to the final destination for both imports and exports. Full container loads can be transloaded using our warehousing or transport teams, with delivery arranged to any point in the US, Canada, or Mexico as needed.
• Rail options via the West Coast or Canada can be used for select terminals in the eastern US.

For shipments routed via the West Coast that may require expedited handling due to potential strike-related rail disruptions:

• Our team can assist with diversions, where containers can be unloaded at the port of arrival, bypassing rail transport for transloading and trucking to their final destination using our warehousing and domestic teams.
• Expedited rail options may be available for select inland points in the US from certain Far East origins through Los Angeles.

If you have any questions regarding delays or contingency options, please don’t hesitate to contact us.