Major Ports on the U.S. East Coast and Gulf Coast preparing for first work union strike in nearly 50 years

The unresolved contract negotiations between the International Longshoremen’s Associations (ILA) and the United States Maritime Alliance (USMX) is reaching its September 30 deadline, raising the likelihood of a major disruption to the flow of goods to and from North America beginning in October. 

The ILA is North America’s largest union for maritime workers, representing 85,000 members, and a strike would shut down a total of 36 ports, including five of the busiest on the continent.  

The White House has already stated that it would not invoke the Taft-Hartley Act to force a return to work and has stressed the importance of reaching a deal through negotiations. 

Shippers that rely on these ports have been encouraged for many months to consider alternative shipping routes, as carriers and terminal operators are already beginning to slow operations at the affected ports to avoid a pileup of containers. Even if an agreement is reached before a strike, or shortly after a work stoppage begins, a quick return to normal operations is not likely, with a day of port congestion resulting in roughly a week of delay for the arrival of shipments. 

Shippers should also begin to anticipate additional fees from carriers and demurrage charges. Hapag-Lloyd has already posted a Work Disruption Surcharge, effective October 18, 2024, of 1,000 USD per TEU.

We will continue to monitor the situation, including lag times at ports on the U.S. West Coast and in Canada and Mexico caused by an influx of diverted cargo. If you have any questions, please reach out to us sales@canaangroup.ca.