ILA Strike Updates
January 9
Last night, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) reached a tentative agreement on a new six-year master contract. If finalized, this deal averts the possibility of a work stoppage that could have disrupted U.S. ports along the East and Gulf Coasts starting January 15. The agreement, which still requires ratification by both parties, includes protections for current jobs while introducing measures to modernize ports through technology, aiming to enhance safety, efficiency, and supply chain capacity.
The agreement is also expected to prevent a spike in freight rates that could have resulted from a strike. While the potential disruption had been flagged as a major concern for freight markets, analysts note that ongoing geopolitical and economic pressures – including the Red Sea crisis – continue to affect freight rates.
The deal also underscores the contentious debate over automation at ports. The tentative framework positions technology as a job creator rather than a job eliminator, reflecting a compromise aimed at balancing modernization with labor protections.
Negotiations remain sensitive, and full details of the agreement will not be disclosed until members of the ILA and USMX review and approve it.
More details to come.
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January 7
The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) are scheduled to resume contract negotiations today. The current contract – extended after a tentative agreement in October that included a 62% wage increase over six years – is set to expire on January 15.
A key point of contention remains the issue of port automation, with the ILA opposing increased automation due to concerns over job security. If a new agreement is not reached by the deadline, there is a potential for a coast-wide strike commencing on January 16, which could disrupt operations at major East and Gulf Coast ports.
Such a strike would disrupt the nation’s supply chain, potentially costing the economy billions of dollars daily. Importers, exporters, and logistics companies are preparing for possible impacts, including stockpiling goods.
December 13
President-elect Donald Trump voiced opposition to port automation, aligning with the International Longshoremen’s Association (ILA), after meeting with union President Harold Daggett. In a December 12 Truth Social post, Trump argued that automation’s financial benefits “are nowhere near the distress, hurt, and harm” caused to workers. He criticized ocean carriers for prioritizing profits, saying, “They’ve got record profits, and I’d rather these foreign companies spend it on the great men and women on our docks, than machinery, which is expensive and will constantly have to be replaced.”
The United States Maritime Alliance (USMX) defended automation, emphasizing its role in enhancing worker safety, efficiency, and port capacity. “To achieve this, we need modern technology that is proven to improve worker safety, boost port efficiency, increase port capacity, and strengthen our supply chains,” the USMX stated. They argued that increased port capacity translates to higher earnings for ILA members, as their pay is tied to the volume of goods moved.
With the January 15 deadline fast approaching, it remains uncertain if Trump’s intervention will impact the outcome.
December 12
The opportunity for shippers to accelerate cargo imports ahead of a potential U.S. port strike and potential new tariffs is rapidly narrowing, as disputes over automation and efficiency continue to intensify. Dennis Daggett, EVP of the International Longshoremen’s Association (ILA), refuted claims of American port inefficiency, arguing that comparisons with international transshipment hubs are flawed.
Unlike U.S. ports – which manage complex imports, exports, and intermodal systems – transshipment hubs focus on simpler container transfers. However, China’s Yangshan Port does not perform transshipment, is heavily automated, and tops the list of global port productivity. This is emblematic of the type of port automation the United States Maritime Alliance (USMX) sees as a model of efficiency.
Critics of American ports highlight infrastructure issues – outdated railways, highways, and dredging – affecting productivity, which is also a concern Daggett shares. He blames inefficiencies on aging systems rather than union operations, calling for investment in modern infrastructure. However, industry expert and CEO of Vespucci Maritime Lars Jensen labeled the ILA’s rebuttal as fragmented, pointing out contradictions in their stance against automation.
Meanwhile, shippers are rushing to import goods amid fears of disruptions. The National Retail Federation (NRF) predicts a surge in imports, with companies front-loading to avoid potential fallout from a strike or higher tariffs promised by President-elect Donald Trump. The NRF’s Jonathan Gold urged both sides to negotiate swiftly, and advocated for targeted tariff policies to minimize consumer impact.
November 15
The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) remain at an impasse in their master contract negotiations, according to a USMX statement on Wednesday. Discussions resumed this week following a brief October strike at East Coast ports, but with the January 15 deadline approaching, progress is still elusive.
Automation remains the central sticking point. Talks collapsed after the USMX proposed semi-automation measures. The ILA claims that this contradicts earlier assurances that automation would not be a negotiation topic. While the ILA supports automation aimed at enhancing safety and efficiency, they insist that human oversight is essential.
The USMX countered, arguing that restricting semi-automation undermines the industry’s ability to modernize and meet future supply chain demands. They emphasized that their proposals focus on improving operational capacity and job protection, not job elimination. According to the USMX, adopting proven technologies from other ports is vital for long-term competitiveness. With only two months remaining to reach an agreement, the potential for further delays looms, threatening the stability of East and Gulf Coast port operations and the broader supply chain.
October 4
Today, ports across the U.S. East and Gulf Coast are back open. In a joint statement released last night, the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) announced that they have tentatively agreed to a deal on wages, and are extending the master contract until January 15, 2025. They will now reopen talks to discuss the remaining issues on the table.
Those outstanding issues include automation, and the resolution to that matter will be key to diverting another strike in January. As with many industries, companies see it as a way to increase profit and efficiency, while workers see it as a loss of jobs. And the topic of automation at ports is a contentious one around the world. European port worker unions previously negotiated into their contacts protections against automation. Their deal states that a union job cannot be lost when automation is introduced.
It’s a delicate balance – because automation can also benefit workers – but it’s a complicated negotiation the ILA and USMX will undertake between now and the end of the year.
October 1
As expected, the strike by the International Longshoremen’s Association (ILA) began this morning in 36 ports across the U.S. East (Atlantic) and Gulf Coast. The U.S. Maritime Alliance (USMX) made a final attempt to thwart the strike with an offer of about a 50% wage increase, but it was rejected. The UXMX was hoping that the offer – which included an extension of the current master contract – would keep the ports operational while the two sides could, “fully resume collective bargaining around the other outstanding issues – in an effort to reach an agreement.”
According to the USMX, the offer also tripled employer contributions to retirement plans and strengthened healthcare options. However, they also wanted to retain the current language around automation and semi-automation, which has been a major point of contention with the ILA and dockworkers.
Leading the charge for the ILA is International President Harold Daggett. After the USMX final proposal was rejected, he stated, “(the) USMX brought on this strike when they decided to hold firm to foreign-owned ocean carriers earning billion-dollar profits at United States ports, but not compensate the American ILA longshore workers who perform the labour that brings them their wealth.” He also added that the dockworkers are prepared to “to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve.”
If prolonged, the strike could cause significant damage to the U.S. supply chain economy. It has been estimated that every one day of disruption creates five days of backlog. The government had the Taft-Hartley Act at its disposal – a federal law that can restrict the power of labor unions and limit their activities – but did not invoke it.
If you are shipping goods, take note:
Bookings & Schedules
Carriers will continue to accept dry container export bookings from Asia to these ports, but may change service rotation or booking release status without prior notice. Carriers are expected to suspend the booking and carriage of dangerous goods and perishables.
Import Demurrage at Terminal
Carriers will follow terminal policy at each port. If a port is closed, and containers cannot be picked up, they may not charge storage fees for those days. Refrigerated shipments in the terminal will not be monitored during port disruption. Import cargo left idling in the terminal after a strike concludes may be subject to the carrier’s abandonment process.
Import Detention
If a port is closed, and containers cannot be returned to the marine terminal, the carrier may not charge detention (per diem) for those days. However, carriers may have near-dock depots that the shipper may be directed to use.
Force Majeure
In the expected event that carriers declare force majeure, they reserve the right to discharge containers, originally destined for affected ports, to alternative ports, with any on-carriage costs to be arranged for the account of the cargo.
Port Congestion Surcharges
Multiple carriers have filed port congestion surcharges ranging from $1,000 to $3,000 per FEU (forty-foot equivalent unit), effective between October 11 and October 27 (cargo receipt date at origin). Carriers may also adjust their respective FAK (freight all kinds) rates and/or PSS (peak season surcharge) fees, effective October 15.
September 25
The potential strike by the International Longshoremen’s Association (ILA) threatens to severely disrupt the U.S. supply chain, particularly at East and Gulf Coast ports. The ILA represents 45,000 dockworkers, and if no agreement is reached with the U.S. Maritime Alliance (USMX) by September 30, a strike could begin the next day. This would mark the first coast-wide strike since 1977, affecting key ports from Maine to Texas.
These ports handle about 41% of the port volume in the U.S., making them vital for both imports and exports. The strike could trigger widespread delays in shipping, shortages of goods, and higher costs across multiple sectors – from consumer goods to essential industrial materials. Critical industries such as water utilities, which rely on chemical imports, could face significant delays that will compound existing supply chain vulnerabilities. It has been estimated that every one day of disruption creates five days of backlog.
The looming strike has already prompted businesses to explore alternatives, such as rerouting shipments to West Coast or Canadian ports. However, these solutions come with higher costs and their own logistical challenges. If the strike overlaps with the holiday shopping season, businesses may face product shortages or need to resort to expensive air freight solutions to maintain inventories. Companies who were already anticipating this strike have been boosting inventory levels and diversifying their supply chain routes in preparation.
The core of the conflict centers around job security concerns, with dockworkers opposing port automation, which they argue threatens their jobs. On the other hand, the USMX and port operators see automation as essential for future efficiency and competitiveness, especially given growing cargo volumes.
In short, the strike poses a significant risk to the U.S. economy, with the potential to ripple across global supply chains if it isn’t resolved swiftly.
While the U.S. government has the Taft-Hartley Act at its disposal – a federal law that can restrict the power of labor unions and limit their activities – it is unlikely to be enforced.
