Potential ILA Strike Threatens U.S. East and Gulf Coast Ports: What Shippers Need to Know

The Latest Developments

The International Longshoremen's Association (ILA) and United States Maritime Alliance (USMX) have reached a tentative wage agreement and extended their Master Contract until January 15, 2025, effectively ending the strike that began on October 1. Both parties issued a joint statement on October 3 stating:

"The International Longshoremen's Association and the United States Maritime Alliance, Ltd. have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025 to return to the bargaining table to negotiate all other outstanding issues. Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume."

This development comes after three days of work stoppages that disrupted operations at major U.S. East and Gulf Coast ports. The tentative agreement includes a nearly 50% wage increase over six years, tripled employer contributions to employee retirement plans, enhanced healthcare options, and maintaining current terms on automation and semi-automation.

While this extension provides temporary relief, several key issues remain unresolved, particularly around port automation. Both parties will return to negotiations to address these outstanding concerns before the new January deadline.

Impact on Supply Chains

Even with the strike's end, shippers can expect some lingering disruptions as ports work to clear backlogs:

• Vessel bunching and potential congestion at East and Gulf Coast ports
• Possible chassis shortages and appointment availability issues for terminal pickup/empty returns
• Temporary surges in trucking demand and rates, especially for transloading services
• Potential air freight rate increases through November as some shippers shift modes

Several major carriers had already implemented contingency measures that may take time to unwind:

• Port omissions and cargo discharges at alternate locations
• Restrictions on dangerous goods and reefer cargo bookings
• Pauses on new U.S. export bookings for certain cargo types
• Changes to detention policies for empty and export containers

Shippers should stay in close contact with their logistics partners to navigate any residual disruptions and prepare contingency plans for the possibility of future labor actions as negotiations continue.

How FreightAmigo Can Help

At FreightAmigo, we understand the challenges shippers face during times of supply chain uncertainty. Our Digital Logistics Platform provides powerful tools to help navigate potential disruptions:

• Real-time tracking and visibility across all modes of transport, allowing you to stay informed of your shipments' status and quickly identify any delays
• Access to a diverse network of carriers and service options, enabling rapid pivoting between routes and modes as needed
• Advanced analytics and reporting to help optimize inventory levels and transit times
• 24/7 support from our team of logistics experts to provide guidance and assistance

We're committed to supporting our clients through this transitional period and beyond. Our Digital Logistics Solution allows shippers to compare quotes, book shipments, and manage documentation seamlessly across multiple carriers and modes. This flexibility is crucial when adapting to rapidly changing market conditions.

As negotiations between the ILA and USMX continue, FreightAmigo will closely monitor developments and provide timely updates to our clients. We're here to help you develop robust contingency plans and ensure your supply chain remains resilient in the face of potential future disruptions.

Looking Ahead

While the immediate crisis has been averted, the underlying issues that led to this strike remain unresolved. Shippers should use this time to:

• Review and potentially diversify their port and carrier strategies
• Reassess inventory levels and safety stock requirements
• Explore alternative routing options, including increased use of West Coast ports or air freight for time-sensitive cargo
• Stay informed about ongoing negotiations and be prepared to implement contingency plans if needed

By leveraging FreightAmigo's Digital Logistics Platform and expert support, shippers can build more agile and resilient supply chains capable of adapting to future challenges. We're committed to providing the tools and insights needed to navigate these complex logistics landscapes effectively.