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Cargo owners are being urged to create backup plans in anticipation of a potential strike at ports along the US east and Gulf coasts, which could disrupt traffic starting October 1st, coinciding with the busiest shipping season.
The six-year labour agreement between the International Longshoremen Association (ILA) and United States Maritime Alliance (USMX), which covers ports from Maine to Texas, is due to expire on September 30th. The ILA represents approximately 45,000 port workers, while the USMX speaks for terminal operators at 46 ports.
Negotiations between the two sides began a year ago but stalled after a few weeks. ILA president Harold Daggett has repeatedly stated that the union will not continue working under the current contract past its expiration, potentially leading to a strike on October 1st. Daggett has directed union branches to resolve local work issues by mid-May to prevent a situation similar to the west coast contract negotiations delayed by a local dispute.
This leaves a limited timeframe to settle the main contract talks, which are expected to centre around labour compensation, automation, and work jurisdiction. Some observers warn that the impact of work stoppages on imports could be immediate, especially considering the ILA’s stance and the situation regarding the Panama Canal.
At this time, we are monitoring the situation and advising customers who are concerned to speak with us about developing contingency plans for alternative arrangements in case of a strike. Please contact your representative or contact the sales team within your territory for more information. Click here: https://denholmgoodlogistics.com/contact/