East Coast Ports Strike Likely Happening – Will Cause Delays, Additional Costs, and Impact the Economy

July 18, 2024

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**BREAKING NEWS: Advanced Logistics has exclusively learned from an inside source close to the negotiations that the ILA has allegedly declined the federal mediator, and we should prepare for a strike.**

We wanted to update you on a crucial development that could have a major impact on shipping and logistics operations along the East Coast. As we all rely heavily on the ports and the longshoremen, it is no secret that the longshoremen unions are strong and could potentially disrupt our nation’s economy by halting operations should contract negotiations not go as planned.

Currently, the International Longshoremen’s Association (ILA) on the East Coast is in the process of renegotiating their contract with the United States Maritime Alliance (USMX) for East Coast Ports, set to expire at the end of September 2024. This negotiation covers wages, benefits, working conditions, and job security, and is now at a critical stage that could potentially result in a shoreman strike.

A central issue in these negotiations is the introduction of port automation at select East Coast ports, which has become a contentious point affecting the progress of discussions.

Should a strike occur, it could severely disrupt port activities and logistics operations at major East Coast ports. Anticipated consequences include delays in cargo handling, vessel operations, and broader supply chain disruptions, impacting shipment schedules, transit times, and inventory management for our clients. Please note should this happen, extended delays should be anticipated coupled with SSL/Port demurrage and per diems, plus increased drayage pricing along with congestion fees (once the strike is over). While we believe increases to only be temporary, nevertheless, the carriers will want more, due to the increased demand.

As your freight partner, we are closely monitoring developments and maintaining continuous communication with port authorities, shipping lines, and relevant stakeholders. Our objective is to minimize any potential impact on your shipments and provide proactive solutions to mitigate disruptions.

While we cannot directly influence contract negotiations or ensure seamless port operations, we are dedicated to keeping you informed and prepared.

Should you have any questions or concerns about your shipments or how this situation might impact your business, please do not hesitate to reach out to us.

Please see below for further details.

ILA: Threat of Strike at US East and Gulf Coast Ports “Growing More Likely” (maritime-executive.com)

US East Coast ports face possibility of strikes – The Foundation For Future Supply Chain | FFSC (futuresupplychains.org)

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