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Potential ILA Strike – Updates
Further to our previous notice, the International Longshoreman (ILA) and the United States Maritime Alliance, Ltd. (USMX) existing contract will expire on September 30th, 2024. Talks have stalled over key issues, including wages and automation, as the ILA remains unwilling to meet with the USMX to reach an agreement on a new master contract.
On September 23rd, 2024, the U.S. Department of Labor reached out to the USMX suggesting that the Federal government appears to be willing to intervene to ensure an agreement between the parties is reached.
A potential ILA strike will have impacts on supply chains, resulting in delays in cargo movement, increased costs and logistic challenges for businesses.
If a labor disruption takes place, all East Coast and Gulf ports and connected services, including cargo movement ashore, gating cargo in/out of marine terminals, line-handling, and functions, such as rail and trucking connectivity, will be impacted.
An estimated 147 vessels are on route to the potential impacted ports by October 1st, 2024. Congestion can be expected.
Ocean carriers and terminals are urging customers to make all efforts to expedite the readiness of import documentation and clearance to facilitate prompt retrieval of cargo prior to work stoppages. See the ports below for daily updates and contingency plans:
Some terminals, such as Savannah and Houston, are extending their hours of operation, including being open on Saturday and Sunday, to facilitate the movement of goods that will arrive by September 30th, 2024.
In anticipation of additional freight, Port of Long Beach said it is equipped and ready to handle an increase in cargo, with plans to flex gate hours and utilize its terminal’s overflow site, should a strike occur.
For additional information and assistance, please contact your local Delmar Representative.