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Dear Customer,
The International Longshoremen’s Association (ILA) representing 45,000 workers on the US East and Gulf coasts said that its members would go on strike on October 01, 2024 if a new contract is not in place.
The union contract between the ILA and the United States Maritime Alliance (USMX) is scheduled to expire on September 30, 2024.
On September 4-5th, the ILA conducted wage scale meetings that concluded with unanimous support for a coastwide strike.
Formal talks between the two parties have reached an impasse as the parties’ wrangle over pay, terminal automation, healthcare coverage and retirement benefits.
Any work slowdown or stoppage will affect key ports including New York / New Jersey, Houston and Charleston, backing update goods ahead of the holiday season and US presidential elections.
Industry executives have stated that such disruptions would have “serious ripple effects” on global supply chains already under pressure from Red Sea diversions.
President Biden could invoke the federal Taft-Hartley Act to force the union back to work, but it would be a move fraught with political risk coming just before the Nov. 05th election.
We will continue to monitor the situation and provide further update as new information is made available.
Please reach out to your Hensall Global representatives to discuss should you have any questions / concerns.
Sincerely,
HENSALL GLOBAL LOGISTICS
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