US East and Gulf Coast Ports Face Imminent Shutdown as Union Announces Intent to Strike

The International Longshoremen’s Association (ILA) on Sunday (Sep 29) announced plans for a widespread strike at all Atlantic and Gulf Coast ports, scheduled to begin at 12:01 am on Tuesday, October 1, 2024.

With just 36 hours remaining before the expiration of the current ILA-USMX contract, negotiations between the ILA and the United States Maritime Alliance (USMX) have reached an impasse. The strike would involve 85,000 ILA members and impact ports from Maine to Texas, the ILA said in a Sunday update posted to Facebook.

“United States Maritime Alliance (USMX) refuses to address a half-century of wage subjugation where Ocean Carriers profits skyrocketed from millions to mega-billion dollars, while ILA longshore wages remained flat,” the update said.

The potential work stoppage will affect 45,000 port workers at 36 ports responsible for handling more than 40% of total containerized goods entering the United States. The strike also comes at a particularly challenging time for ocean supply chains, which have already faced significant disruptions in 2024 due to conflicts in the Red Sea, drought in the Panama Canal, and the Baltimore bridge collapse.

The disruptions, combined with strong U.S. demand, have already caused average spot freight rates from the Far East to the U.S. East Coast to increase by over 300% between December 2023 and early July 2024, according to Xeneta.

Despite the high stakes, the Biden administration has indicated that the president does not plan to invoke the Taft-Hartley Act, a federal law that allows presidential intervention in labor disputes that create a national emergency.

As this week’s deadline approaches, the outcome of these negotiations is set to have far-reaching consequences for the U.S. economy and global supply chains.

The ILA said its members will maintain their pledge to handle military cargo and work passengers vessels throughout the strike.

Source: gCaptain

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