Article by: Rick Walker, Vice President, TradeInsights, LCB/CCS

With the deadline date of October 1 looming, the potential for a labor strike that could halt cargo handling operations from Houston to Boston still remains. The last time the International Longshoremen’s Association (ILA) collectively struck in the East and Gulf Coast ports was in 1977. The ILA notified its employer groups that the current agreement between the two parties expires Sept. 30 and would not be extended. This “60-Day Notice” is required under Section 8 of the Labor-Management Act of 1947, as amended. Competing statements from the United States Maritime Alliance, known as USMX, and the ILA on Friday indicate the two sides are still pretty far apart. USMX, which represents terminal operators and ocean carriers, said it remains ready to continue bargaining, and that the latest offer to dockworkers includes “industry-leading wage increases” and retains the current contract’s language on automation.

On Friday, the ILA’s Executive Vice President Dennis Daggett, accused shipping CEOs of “taking home bonuses in the billions” and ocean carriers of raking in profits by “raising rates on their customers due to global conflicts or natural disruptions.” The union is also demanding significant wage increases to make up for inflation and a share of the extraordinary profits won by ocean liners during the pandemic.

US industry groups that rely on imports and exports are sounding the alarm. The Retail Industry Leaders Association, whose members include Home Depot, Target, and Dollar General, warned last week that a strike could impact the peak holiday shipping season and called on the White House to get involved if necessary.

“Absent positive developments in the coming weeks, the Biden administration needs to engage both sides and help reach a resolution that averts any labor stoppage at these crucial commerce gateways,” RILA said.

We will continue to monitor this situation and provide updates as they become available.

Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions.