Industry News

USA - POTENTIAL ILA STIKES IN JANUARY 2025

The International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) are working toward a critical deadline of January 15, 2025, to finalize labour negotiations for East and Gulf Coast ports.

The possibility of a strike looms if an agreement isn't reached, potentially leading to widespread supply chain disruptions. Key unresolved issues include port automation and jurisdiction over specific job roles. These negotiations are anticipated to be highly contentious, given the stakes for both labour and port efficiency.

Potential Impacts:

• Short-Term Strikes (1-2 days): While disruptive, congestion and delays from shorter strikes are usually resolved within a week. However, these events might lead to carriers invoking force majeure and rerouting some containers to foreign ports.
• Extended Strikes (1-2 weeks): Longer disruptions could overwhelm port capacities, trucking, and rail services, significantly increasing costs and delays

 Mitigation Strategies:

• Alternative Routing: Leveraging West Coast or Canadian ports like Los Angeles and Montreal can help bypass affected regions. These routes are especially viable for avoiding disruptions on the East and Gulf Coasts.
• Enhanced Intermodal Solutions: Utilizing integrated logistics services can ensure greater control and visibility across supply chains during high-impact periods

Preparation remains critical. Importers and Exporters should consider diversifying their supply chain strategies, proactively booking space on alternative routes, considering transit times, costs and your specific requirements. Whilst using alternative services may not be optimal under normal conditions, they can offer a solution to navigate the potential challenges that any strikes may bring.

We will continue to monitor the situation with our US partners. Please contact your local TCF representative for further information or to discuss this subject in more detail.

Below further information listed on the USA Chamber of Commerce website

https://www.uschamber.com/employment-law/unions/dock-workers-could-strike-again-what-you-need-to-know