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The International Longshoremen's Association (ILA), the largest union of maritime workers in North America, is preparing for a strike that could disrupt East and Gulf Coast port operations in the United States. Representing approximately 45,000 longshore workers, the ILA plays a critical role in the movement of goods, particularly at some of the busiest U.S. container ports, which handle more than 13 million TEUs annually—over 56% of all inbound containers. Founded in 1892, the union is known for its strong stance on protecting labor jobs against automation and other modern technologies that could displace workers. It has consistently sought fair wages, safe working conditions, and job security for its members.

Current Contract Dispute and Reasons for Strike

The ILA's current contract with the United States Maritime Alliance (USMX), a coalition of container carriers, direct employers, and port associations, will expire on September 30, 2024. Contract negotiations have become strained due to disagreements over automation in the ports, which raises concerns about encroaching on union jobs. The ILA is also pushing for a 77% wage increase over the next six years, which would outpace the 32% wage bump agreed upon by West Coast longshoremen in 2023.
Union representatives have voiced unanimous support for a strike if no agreement is reached by the end of September.

Potential Impact of the Strike on Global Trade

If the ILA proceeds with its strike, the effects on global trade could be significant. The disruption could lead to delays in the delivery of goods, increased shipping costs, and potential bottlenecks at alternative ports. Businesses relying on just-in-time deliveries, such as retail, manufacturing, and automotive, are particularly vulnerable.

Current Status of Negotiations

As of now, negotiations between the ILA and USMX are ongoing. The union has made it clear that without guarantees about the future of automation and job security, they are prepared to strike. Despite the potential for last-minute talks, businesses worldwide are bracing for impact. In the event of a strike, the U.S. government can intervene by invoking the Taft-Hartley Act, ordering striking workers back to work for 80 days while negotiations continue.

Contingency Planning – FCL or LCL:

The following options will require all or some of the following additional activities: drayage, transloading, rail, long-haul, and border clearance activity.

Alternative routings:

Canadian ports (Montreal/Vancouver): Redirect cargo through Canada, followed by onforwarding services to reach U.S. destinations. *Please note this would not be a viable option in the event of a Canada rail or port strike occurring during an ILA strike.

Mexican ports (Veracruz, Altamira, Manzanillo): Redirect cargo to Mexican ports, followed by onforwarding services to reach US destinations.

US West Coast ports (Los Angeles, Oakland, Seattle/Tacoma): Redirect cargo through West Coast ports with onforwarding services to reach Midwest or East Coast delivery points.

We understand the challenges these potential strikes may pose and are committed to working with you to minimize disruptions to your supply chain. Please reach out to your CEVA Logistics representative for more detailed guidance and support.

Should you seek additional information, please see the following publications:

Sea Intelligence | Impact Analysis & Backlog Clearing Time

Marine Link | US Imports Surge Amidst Threat of ILA Strike

Supply Chain Brain | U.S. East, Gulf Coast Dockworkers Inch Closer to October Strike

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