As the end of the contract extension approaches, seaports in the U.S. can see the ILA strike happening In January. Months of unsuccessful negotiations between the ILA (International Longshoremen’s Association) and the (U.S. Maritime Alliance) resulted in an October strike. The two parties disagreed on wages and the use of automation at ports. Port workers across the East and Gulf Coast began protesting until October 3^rd, when they reached a tentative agreement. The agreement was a 61.5% pay raise and a $4 an-hour yearly wage increase for the next six years. USMX also extended the current contract to mid-January. With the January 15^th, 2025, extension ending date nearing, it can have numerous implications for domestic and international shipping.

Why Could We See The ILA Strike Happening In January?

The chances of a port strike have increased with President-elect Donald Trump publicly backing the ILA. Trump recently met with the ILA President Harold Daggett and Vice President Dennis Daggett.  After the meeting, Trump noted, “the financial benefits of automation are “nowhere near the distress, hurt, and harm the technology creates for workers”. Various components can contribute to a potential strike, including the minimal conversation between the parties. The ILA and USMX haven’t had any significant talks for over a month despite January 15^th quickly approaching. Despite this, the ILA’s vice president voiced his displeasure regarding the growing use of automation earlier this month.

Despite the ILA’s disposition to automation, the USMX believes it is essential for moderation. The USMX views automation as necessary for building a more sustainable future for the U.S. maritime industry. They also argue that advanced technology will allow ports to handle more cargo while creating more jobs. Other players in the transportation industry believe that the strike may not happen and that the parties will reach an agreement. Along with Trump’s backing, an extension already includes more excellent pay and a yearly wage increase.

What Does The Strike Mean For The Shipping Industry?

Since the ILA handles approximately half of the U.S.’s ocean shipments, a potential strike can have significant effects. During the October 1^st strike, 36 U.S. ports shut down, resulting in an economic loss of $5 billion daily. When a port stoppage happens, it can lead to congestion, which may disrupt numerous supply chains. To mitigate against delays, shippers could reroute their shipments to West Coast ports like the Port of Los Angeles. However, rerouting can have the opposite effect, extending the time it takes to ship the goods and causing congestion. They can also use different methods of conveyance like air or, if possible, land.

When shipping cargo internationally, you must take the appropriate steps to mitigate disruptions. Along with the ways the article lists, this can include being present with any news that may affect your shipment. Shippers have already begun importing cargo early to avoid a potential strike and other scenarios, like a tariff increase. Speaking to a logistics provider can also help find the right step to prevent delays. Contact A1 Worldwide Logistics at 305-440-5156 or info@a1wwl.com to navigate any situation impacting your supply chain. We have freight brokering, customs brokering, warehousing, domestic shipping, and more to guarantee the success of your shipment.