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Less than five days remain before the International Longshoremen’s Association (ILA’s) current contract expires and, most likely, a large-scale strike begins. The ILA and U.S. Maritime Alliance (USMX) have not met face to face since June and remain far apart on key issues like wage increases and port automation.
Multiple shipper associations have reached out to the White House asking it to intervene. The vocally pro-union administration has stated that it does not intend to end a strike via the Taft-Hartley Act. At the same time, with the economic impact of a port shutdown estimated at several billion dollars per day and election day approaching, the administration will also be under pressure not to allow a strike to stretch on too long.
In expectation of a strike starting Monday night, ports, carriers and regulators are getting ready, reported Freightos, a cargo marketplace.
An ILA strike on the East Coast and Gulf would completely shut down many ports and could effectively paralyze some that employ both ILA and non-union labor, while other hybrid ports will be able to keep some terminals running.
