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Cargo owners urged to prepare for a potential strike at US East and Gulf Coast ports

Cargo owners urged to prepare for a potential strike at US East and Gulf Coast ports

Posted on March 22, 2024   |  

Cargo owners are advised to prepare backup plans for a possible strike at US East and Gulf Coast ports starting October 1, coinciding with peak shipping season.

The 6-year labor contract between the International Longshoremen Association (ILA) and the United States Maritime Alliance (USMX) is due to expire on September 30.

ILA represents around 45,000 port workers, while USMX represents terminal operators at 46 ports from Maine to Texas.

There's a short window to resolve main contract talks, expected to focus on labor pay, automation, and work jurisdiction.

ILA has sued USMX, Hapag-Lloyd, and OOCL for $300 million over a disputed labor model at Charleston's Leatherman terminal.

ILA is also against the allocation of offshore wind component handling work at New London port to the International Union of Operating Engineers.

Potential work stoppages could impact imports swiftly due to ILA's stance and the Panama Canal situation, prompting cautious planning for peak-season imports by retailers.