In discussions ahead of the Asia-to-North America contract cycle, stakeholders have highlighted concerns about potential labor disruptions, including the possibility of a strike along the US East and Gulf coasts—an occurrence not seen for decades.
ILA NEGOTIATIONS WITH USMX
International Longshoremen’s Association (ILA) President Harold Daggett recently advised ILA members to prepare for a potential strike by October 2024 if no agreement is reached with carriers before the current collective bargaining agreement expires on September 30, 2024.
Anticipated negotiations between ILA and the United States Maritime Alliance (USMX) are expected to factor in the wage increase benchmarks set by a recent agreement on the West Coast. Daggett is looking toward a comparable compensation arrangement from USMX, setting the stage for negotiations potentially impacted by factors such as pandemic-related disruptions, record freight rates, and carrier profits, reminiscent of the West Coast discussions.
THE ILA HAVE NOT HAD ANY SIGNIFICANT STRIKES ALONG THE EAST AND GULF COASTS SINCE 1977
Although there has been a relative labor peace on the East Coast since 1977, sporadic disruptions, like the one-day wildcat strike in 2016 and a brief walkout in 2018, have punctuated the prevailing tranquility. Nonetheless, this stability has attracted large retailers investing in containerized supply chains through East and Gulf coast ports, seeking refuge from disruptions often accompanying West Coast negotiations.
Recently, disruptions during previous West Coast negotiations and the cautious oversight of supply chains post-pandemic have led shippers to engage in discussions with carriers and NVOs, focusing on contingency plans for the 2024 contract renewals. However, the considerations involve assessing the inconvenience and costs of diverting from established routings, rail and trucking vendors, and distribution center networks.
As the contract expiration in 2024 approaches, the delicate equilibrium between labor demands, industry stability, and the broader economic implications of potential disruptions remain uncertain for these pivotal trade routes.
