Concerns Over Strikes in US Ports Impact Shipping Operations Significantly

STS cranes at APM Terminals' Port Elizabeth Terminal, at the Port of New York and New Jersey. Photo: Mihai_Andritoiu/Shutterstock
As the contract deadline approaches between ILA and USMX on September 30, negotiations have stalled, risking supply chains at Gulf and East Coast ports. ILA is considering a strike on October 1 if an agreement isn't reached. USMX offers wage increases but struggles to meet with ILA. Companies are advised to prepare for potential disruptions.
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The contract deadline between the International Longshoreman Association (ILA) and the United States Maritime Alliance, Ltd. (USMX) is fast approaching on September 30. Negotiations have hit a critical standstill, putting at risk the supply chains at Gulf and East Coast ports in the United States. USMX is actively seeking to resume negotiations with the ILA for a new master contract covering 25,000 container and roll-on/roll-off longshoremen. Despite efforts, USMX has been unable to secure a meeting with ILA leadership.

Recent developments saw the ILA convene its wage scale delegates in Teaneck, New Jersey, on September 4 and 5. Following these meetings, the ILA stated that unanimous support for a strike on October 1 would be pursued if a new agreement is not reached. USMX remains committed to finding a resolution, offering competitive wage increases and maintaining current technology language in their proposal for a new agreement. However, the risk of a work stoppage looms large as Maersk warns that even a one-week shutdown could result in a lengthy recovery period of 4 to 6 weeks.

Companies relying on these ports are urged to monitor the situation closely and prepare contingency plans. Maersk has pledged to assist customers in identifying alternative routes and distribution plans should disruptions occur. The industry faces significant challenges should a strike occur, with backlogs and delays expected to increase daily. It is crucial for stakeholders to stay informed and ready for any potential disruptions in the coming days.

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