ILA Strike – US East Coast, Gulf Ports

The International Longshoremen’s Association (ILA) strike remains a significant concern as the contract expiration date is 1 Oct 2024. Negotiations between the ILA, representing 45,000 dockworkers, and the U.S. Maritime Alliance (USMX), have stalled, with both sides unable to reach an agreement on key issues such as wages, automation, and worker protections.

The ILA has indicated a strong likelihood of striking if a new agreement is not reached by the deadline, which could severely impact U.S. ports along the East and Gulf Coasts, mainly container lines, other liner services, RORO, and dry & break-bulk cargoes. This would disrupt supply chains, delay cargo movements, and lead to increased costs across various industries. The potential strike could cost the economy up to $5 billion per day, according to analysts. Since most of the liquid bulk terminals are privately owned / operated, contracting with ILA is very minimal. Any liquid cargoes handled via a public dock could possibly be affected due to ILA strikes, but such public dock liquid bulk operations are very seldom.

Shipping companies may attempt to reroute cargoes affected to non-affected ports, but this could create congestion at those locations. Higher operational costs due to rerouting shipments or delays at ports could increase shipping fees, leading to a ripple effect on product pricing across various industries.

According to some websites, USMX has expressed a willingness to negotiate, offering wage increases and assurances against full automation, but the ILA has rejected these offers, stating that the proposals do not meet their members’ needs, particularly concerning inflation and job security.

We will continue to monitor the situation and keep you updated on the status.

For operational questions, please contact usec.enquiries@iss-shipping.com (US East Coast) / usgc.enquiries@iss-shipping.com (US Gulf Coast)