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Potential Strike at U.S. East and Gulf Coasts
The current contract between the International Longshoreman Association (ILA) and the United States Maritime Alliance, Ltd. (USMX) is scheduled to expire on September 30th, and as of today there is no agreement between the parties. USMX, representing port and shipping sector employers and management in their negotiations of collective bargaining agreements with the ILA labor unions, stated on Friday, September 5th, that they have been unable to secure a meeting with ILA leaders to resume negotiations.
Negotiations have been ongoing since 2022, and the ILA announced last Friday that they would unanimously support “a coastwide strike at ports from Maine to Texas” on October 1st without a new contract. The union represents approximately 25,000 port workers employed in container and roll-on/roll-off operations at 36 ports on the East and Gulf Coasts of the United States.
The last time the ILA went on strike was in 1977. If a strike were to occur, disruptions could be sporadic or there could be a general work stoppage. Even a one-week closure could lead to a recovery period of several weeks, with backlogs, bottlenecks, and delays worsening as time progresses. If prolonged, businesses and consumers alike could experience shortages, increased prices, and general disruptions in services and goods.
KWE will aim to provide timely updates and support to ensure the continuity of your cargo operations. For further assistance, please contact your KWE representative.
For the most accurate and up-to-date information, please check official statements from the two parties: