A port strike across major U.S. East and Gulf Coast ports is looming, with operations set to freeze at up to 14 key ports unless a last-minute deal is reached by October 1, 2024.
The International Longshoremen’s Association (ILA) has threatened the port strike, which could halt essential container and roll-on/roll-off operations at critical locations such as the Ports of New York and New Jersey, Savannah, Charleston, and Houston.
The ILA seeks new contract terms for over 45,000 unionized port workers whose contracts expire this month. After over a year of negotiations, the ILA has warned that it is ready to initiate a port strike if its demands are not met.
The six-year contracts for these workers expire on September 30, and ongoing talks with the United States Maritime Alliance (USMX) have stalled.
In June, the ILA called off earlier discussions over disputes about autonomous technology use at the Port of Mobile, Alabama. The union claims the technology bypasses union labor, while USMX maintains that it has been in place since 2008, predating the 2018 port workers’ agreement.
If last-minute negotiations fail to produce a deal, the port strike could lead to significant disruptions in the U.S. economy, particularly as these East and Gulf Coast ports handle approximately 43% of all U.S. imports.
Some of the key issues in the negotiation include wage increases, with the ILA pushing for up to a 77% pay rise, concerns about automation technology, and upgraded employer contributions to health and retirement plans.
Both sides have filed a Notice to Mediation Agencies (Form F-7) with the Federal Mediation & Conciliation Service (FMCS), although this filing does not guarantee mediation.
USMX has expressed its desire to avoid a port strike, stating, “We are prepared to continue negotiations to secure a new Master Contract and avoid a strike.”
The potential port strike comes amid a broader wave of labor strikes in the freight industry, highlighting ongoing tensions across North American ports, railways, and logistics sectors.
For more information about this story, please reach out to our logistics consultant, Deirdre Moffitt.