Strikes threat to U.S. East and Gulf Coast Ports

The International Longshoremen’s Association (ILA) is facing a critical juncture as its current contract with maritime employers, represented by the United States Maritime Alliance (USMX), is set to expire on September 30, 2024.

With only 80 days remaining, negotiations have stalled, primarily due to disputes over automation and jurisdictional issues at Maersk’s APM Terminals.

ILA President Harold J. Daggett has issued stern warnings that a strike is becoming increasingly likely. He emphasised that ILA members will not work beyond the contract’s expiration and rejected any federal intervention, including from the Biden administration and the Department of Labor. 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. The system processes trucks without ILA labor, which the union claims violates the current master contract.

The potential strike, which could affect all Atlantic and Gulf Coast ports, would have severe implications for the U.S. supply chain, especially with West Coast port workers potentially refusing to handle diverted cargo in solidarity. Economists and trade organizations have raised alarms about the impact on already fragile supply chains. Despite these concerns, Daggett maintains that the ILA membership is fully supportive of the union leadership and ready to “hit the streets” if their demands are not met.

The ILA has a history of resolving contracts without strikes, with the last major disruption occurring in 1977. However, this round of negotiations has proven more contentious. The union had planned to resolve local jurisdiction contracts before starting master contract talks but canceled these negotiations due to the automation dispute. USMX has expressed a desire to move forward productively but acknowledges that time is running out.

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. As the deadline approaches, both sides must urgently find a resolution to avoid a major disruption in maritime operations.

Noatum Logistics understand the importance of risk mitigation in the supply chain, with the expertise, experience and resources to design and implement alternate solutions, that will minimise the impact of any strike disruptions on your business.