Strike Threat on the Horizon

By Parker Allen

At the time of writing this article, a potential strike by port workers along the East and Gulf Coasts looms. “This is not an easily resolved thing. We’re kind of pessimistic at this point,” said Tom Madrecki, vice-president of the Consumer Brands Association, as quoted in Financial Times.1

The labor contract, which covers workers at 36 U.S. ports, is set to expire at the end of September. Labor negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) hit a serious roadblock in June, when ILA suspended negotiations, “declaring that a type of automation introduced at the Port of Mobile in Alabama was in violation of the current contract,” noted Kate Gibson of CBS News.2

In a statement posted on their website on 20 September, ILA’s Executive Vice President Dennis A. Daggett stated, “From Searsport, Maine, to Brownsville, Texas, we are about to engage in one of the toughest battles our union has faced in decades. Strikes are never easy, but in today’s world, with labor laws stacked against us and corporate greed at an all-time high, it remains one of the most powerful tools we have in our fight for justice. And make no mistake, we will be on the right side of history.”3

On 23 September, the USMX released a statement on their website, saying, “We remain prepared to bargain at any time, but both sides must come to the table if we are going to reach a deal, and there is no indication that the ILA is interested in negotiating at this time.”4

With talks at a standstill and the deadline fast approaching, a strike seems increasingly likely. What impact will it have on the country’s supply chain?

Depending on the length of the strike, it could be devastating. On its blog, worldwide transport and logistics company Geodis noted, “Strike action will effectively bring more than half of the United States’ container operations to a complete halt, leaving goods stuck on ships and in ports. Importers, exporters, shippers, carriers, and others need to act now.”5

In that same post, the company offer’s tips for dealing with the shutdown of the East and Gulf Coasts, including utilizing alternate routes and alternate modes of transportation, such as air and ground, when possible.5

Overall, expect delays and higher costs. Prepare now, as capacity on available transportation routes will fill up quickly.5 Communicate with your customers so they are not left in the dark, waiting on supply. And hope for a quick resolution to the conflict – otherwise, transit times and costs will continue to grow.

1 “Looming US ports strike threatens fresh supply chain crisis” (22 September, 2024). Financial Times.

2 Gibson, Kate. Edited by Alain Sherter. “Port officials brace for potential strike by dockworkers along the East Coast” (20 September 2024). CBS News.

3 “Union Will Be on “Right Side of History” if it Must Strike October 1; “Corporate Greed Must End”: ILA Executive Vice President Dennis A. Daggett (20 September 2024). International Longshoremen’s Association.

4 “Update on Status of USMX-ILA Negotiations” (23 September 2024). United States Maritime Alliance, Ltd.

5 “ILA Strike – Your Guide to Dealing with Port Disruption” (20 September 2024). Geodis.