Strike threat intensifies as ILA, USMX face tight contract negotiation window

Posted on January 3, 2025   |  

ILA and USMX must finalize a new master contract before January 15, or face a strike on January 16.

If no agreement is reached, a coast-wide strike will disrupt ports on the US east and Gulf coasts.

Wages have been agreed upon (a 62% increase), but automation remains the key sticking point in negotiations.

USMX supports automation for productivity, while ILA is concerned it will reduce jobs for workers.

Negotiations will resume on January 7, leaving just 8 days to reach a deal.

The contract expires five days before Donald Trump's inauguration, which could influence negotiations.

If a strike occurs, Hapag-Lloyd will introduce surcharges on January 20 to manage the impact.

These surcharges will cost $850 per TEU for imports to east and Gulf coast ports, excluding cargo already in transit.