Update on ILA Labor Contracts and Potential Impact on U.S. Supply Chain
The International Longshoremen’s Association (ILA) labor contracts with the United States Maritime Alliance (USMX) originally expired on September 30, 2024. The current contract has been extended until January 15, 2025, as negotiations continue over key issues such as wages and automation. During October 1-3, ports across the U.S. East and Gulf Coasts experienced complete closures or limited operations due to a strike.
In response, some U.S. importers and exporters expedited shipments, while others rerouted to the already busy U.S. West Coast or delayed shipping altogether in preparation for the January 15, 2025, extension expiration date. The three-day strike forced vessel owners to abandon cargo at foreign ports, and many ocean carriers declared Force Majeure due to their inability to deliver cargo to scheduled ports.
It is essential for shippers to review their supply chain strategies and make contingency plans for the next expiration date of January 15, 2025. Proactive measures for cargo that has not yet shipped or for future shipments include considering air freight, rerouting to the West Coast, and intermodal cross-border solutions, each with its own challenges and costs.
Please be aware of the significant impact the ILA labor strike had on the U.S. supply chain, which may occur again in January. Please contact your John S. James Co. representative if you have any questions or require assistance.
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“US port strike ends after three days but backlog will take weeks to clear”
“Box Lines Declare Force Majeure as U.S. Dockworker Strike Enters Day 2”
“Update 7.. Notifications.. Booking Acceptance.. Exports from the U.S.. Imports to the U.S… Equipment.. Operational Updates..
“We cannot agree to preconditions to return to bargaining – but we remain committed to bargaining in good faith to address the ILA’s demands and USMX’s concerns”
“East and Gulf coast ports strike, with ILA longshoremen walking off job from New England to Texas, stranding billions in trade“
Strike Updates
“CBP Provides Cargo Processing Guidelines for Use During U.S. East-Gulf Coast Strike”
“Port Workers at Montreal to Begin Three-Day Strike on Monday”
“USMX has filed a request for an injunction with NLRB to compel the union to the bargaining table, claiming the union is refusing to negotiate.”
“All FMC Statutes and Regulations Remain in Full Effect in the Event of Terminal Closures Related to Possible Work Stoppage”
“Freight Forward – Strike Growing More Likely; industry-related round-up”
“Despite additional attempts by USMX to engage with the ILA and resume bargaining, we have been unable to schedule a meeting to continue negotiations on a new Master Contract”
“Largest port on U.S. East Coast, New York/New Jersey, begins prepping for what could be first union strike since 1977”
“Carriers Announce Disruption Surcharges for USEC Cargo as Strike Looms”
“Full Text of USMX & ILA Statements”
“GPA Contingency Plans for Possible Work Stoppage on October 1”
“USMX Statement in Response to Joint Association Coalition Letter”
“U.S. Dockworkers Are Bracing for a Strike at Major American Ports”
“Union Reps Back East and Gulf Coast Dock Strike”
“Little Cause for Optimism as Clock Ticks Toward ILA Contract Expiration”
“ILA Rolls Out Strike Mobilization Plan”
“USMX Ready to Resume East/Gulf Coast Labor Negotiations”
“Shippers Seek Alternatives as East Coast Port Strike Looms”
“the USMX Members List the ILA is Striking Against..”
“Half a Century Later, ILA Returns to Strike Mode”
Official Websites for More Details
