The looming ILA strike on the US East Coast

The possibility of a strike by the International Longshoremen’s Association (ILA) in January has raised serious concerns for shippers relying on the 40 ports along the US east and Gulf coasts.

The breakdown of contract negotiations, particularly over the contentious issue of automation, threatens to disrupt supply chains and create significant delays for imports and exports. With the 15th January deadline fast approaching.

At the heart of the dispute is the push for automation in US ports. While port employers argue that automation increases efficiency, capacity, and safety, the ILA sees it as a direct threat to job security. The union has called for the removal of any language on automated or semi-automated equipment from contract proposals, a stance bolstered by president-elect Donald Trump’s intervention.

Trump has publicly backed the union’s opposition to automation, framing the debate as an “America First” issue. His vocal support is expected to strengthen the union’s bargaining position, potentially prolonging negotiations or increasing the likelihood of a strike.

The employers’ group, the USMX, has countered Trump’s stance, emphasising that automation is crucial for supporting American businesses and consumers by improving port efficiency and capacity. Without modernisation, they warn, US ports risk falling behind in the competitive global trade environment.

Impacts on shippers

If the strike proceeds, the repercussions for shippers will be significant. Key risks include:

• Import disruptions: Cargo bound for affected ports may face diversions to alternate ports, delays at transshipment hubs, or extended anchoring times outside ports.
• Export challenges: Exporters may encounter delays at rail yards, shortages of equipment, or difficulty returning loaded containers to terminals.
• Financial pressures: Congestion surcharges, detention fees, and other unplanned costs could accumulate, particularly in inland or rail terminals not covered by Federal Maritime Commission (FMC) guidelines.

Proactive steps to minimise disruption

1. Review shipping plans: Assess upcoming shipments, identify potential vulnerabilities, and prioritise critical cargo.
2. Explore alternative routes: Work with the Logicall team to evaluate options such as alternative ports or transport modes, including air freight for high-value or urgent shipments.
3. Collaborate with partners: Maintain close communication with supply chain partners to stay informed and adapt to changing circumstances.
4. Build flexibility into operations: Prepare for potential delays and factor in buffer time to reduce the impact on delivery schedules.

Logicall is closely monitoring the evolving situation and providing ongoing support to customers. We can help you navigate the challenges posed by a potential strike, with real-time updates, contingency planning, and alternative transport options to minimise disruption.

Get in touch for tailored solutions

For more information on how we can protect your supply chain from potential disruptions DM Holly Todd or Rick Lambert