US Port Strike Seemingly Fast Approaching

September 23, 2024

US Port Strike Seemingly Fast Approaching

A major port strike is set to impact 36 ports on the US East Coast and Gulf Coast ports, which could have a devastating effect on US ocean freight services from October if an agreement cannot be reached in the next week.

Talks regarding new contracts have stalled between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX), with existing contracts due to expire on September 30th.

Hopes that the Biden administration might intervene were dashed last week, when the US government declined to act in response to a letter from 177 US trade associations urging them to do so. 

Negotiations have broken down over wages, bonuses, pensions and the introduction of automation, as we fast approach the ILA union’s threat of a walkout on October 1st.

The strike would mean a walkout of 85,000 members across 36 US ports, with the largest, the Port of New York/New Jersey, now confirming they have started preparations for a complete work stoppage. Carriers also seem resigned to the strike action going ahead, confirming surcharges for ocean freight movements to and from North America, Mexico and The Caribbean from October.

The impact of this strike, could also be devastating on the US economy. So, hopefully an agreement can be reached as we enter the final week ahead of the planned action.

 

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