Update: ILA Port Strikes

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Author: Alex Beni, Operations Manager @ VentureSource Lead Logistics

As you may be aware, we are facing a potential strike at the ports between Houston and Boston. The master contract between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) is set to expire on September 30th. With negotiations becoming increasingly contentious—particularly over automation and wage increases—the risk of a strike at major East and Gulf Coast ports is growing.

This strike could significantly impact supply chain operations for our cargo (both internal and external) being imported and exported within the US. To plan for upcoming delays, we’ve seen large companies (Home Depot, Target, Dollar General) begin to re-route freight to alternative ports, such as Montreal/Toronto and the US West Coast. The ILA and USMX are set to meet on September 4th and 5th to work towards a resolution, however, we do not know what the result of those meetings will be.

The Retail Industry Leaders Association, whose members include the large corporations mentioned above, are planning to call on the White House to get involved if necessary. There would be significant supply chain disruptions during peak e-commerce and holiday buying season, should the strike commence. Maersk, the 2nd largest ocean carrier globally, has stated that for every 1 week of striking that takes place, there will be major effects felt at every major US port for 5-6 weeks after.

Related article can be found on Martime Executive.